In what is another entry in Wall Street's ever growing rap sheet, today Citigroup, Inc. agreed to pay $394 million to settle with investors who accused the bank of manipulating the foreign exchange market. In total, five major banks have agreed to pay a combined $5.6 billion to resolve criminal charges over the foreign exchange market rigging.
Also, today the U.S. Department of Justice (DOJ), the Commodities Futures Trading Commission (CFTC), the U.K. Financial Conduct Authority and other regulators announced the had fined five major banks, including Barclays PLC, Royal Bank of Scotland PLC, JP Morgan Chase, and they will plead guilty to more than $5.6 billion for manipulating the $5.3 trillion Forex (FX) market. Citi and three other banks agreed to plead guilty as part of the criminal settlements. Citi will pay $925 million in criminal fines for its role in the plot, by far the largest of the bunch.
A fifth Bank, UBS AG will also plead guilty on Wednesday to manipulating the London Interbank Offered Rate (LIBOR). Federal prosecutors had originally agreed not to prosecute the Swiss Bank in the LIBOR manipulation scheme but later voided the non-prosecution agreement when it was discovered UBS was also involved in the FX manipulation.
The experienced securities fraud attorneys at Colling Gilbert Wright & Carter represent investors in the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA). If you have lost money as a result of an investment in foreign currencies or other commodities, please contact us for a free case evaluation.