DOJ, US Fed, CFTC, and other regulators confirm settlements over FX rigging allegations; 6 banks to pay $5.6B
- Under the DOJ resolution, JPMorgan Chase & Co. will plead guilty to a single antitrust violation and pay a fine of $550M. Under the resolution with the Fed, the Firm will pay a fine of $342M and has agreed to the entry of a Consent Order. The Firm has previously reserved for these settlements.
- CFTC Order requires Barclays to pay a $115M civil monetary penalty, cease and desist from further violations as charged, and take specified remedial steps, including measures to detect and deter trading intended to manipulate swap rates such as USD ISDAFIX, to ensure the integrity and reliability of the Banks benchmark submissions, and to improve related internal controls
- Barclays to Pay $400 Million Penalty to Settle CFTC Charges of Attempted Manipulation and False Reporting of Foreign Exchange Benchmark Rates
- Settlement with the DOJ includes a guilty plea by Citicorp, a subsidiary of Citigroup Inc., to a violation of the Sherman Antitrust Act and fine of $925M. The settlement with the Fed includes the entry of a cease and desist order and a civil money penalty of $342M. Citi also announced that it has reached a separate agreement to settle related private U.S. class action claims for a payment of $394M, subject to court approval.
- Federal Reserve on Wednesday announced it will impose fines totaling more than $1.8 billion against six major banking organizations for their unsafe and unsound practices in the foreign exchange (FX) markets. The fines, among the largest ever assessed by the Federal Reserve, include: $342M each for UBS AG, Barclays Bank PLC, Citigroup Inc., and JPMorgan Chase & Co.; $274M for Royal Bank of Scotland PLC (RBS); and $205M for Bank of America Corporation. The Federal Reserve also issued cease and desist orders requiring the firms to improve their policies and procedures for oversight and controls over activities in the wholesale FX and similar types of markets
- Federal Reserve is taking action against UBS, Barclays, Citigroup, JPMorgan Chase, and RBS concurrently with the Department of Justice's criminal charges against these five organizations related to misconduct in the FX markets. Bank of America was not part of the actions taken by the DOJ and not charged by the DOJ