Fraud: Citibank, HSBC, JPMorgan Chase, 2 others fined $3.18 billion

Posted by News Express | 13 November 2014 | 3,701 times

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Five global banking giants have been fined a total of $3.18 billion by U.S. and U.K. financial regulatory bodies for manipulating global foreign exchange benchmark rates.

Citibank, HSBC, JPMorgan Chase, The Royal Bank of Scotland and Switzerland’s UBS were penalised yesterday by both the U.K. Financial Conduct Authority (FCA) and the U.S. Commodity Futures Trading Commission, reports Anadolu Agency.

“The setting of a benchmark rate is not simply another opportunity for banks to earn a profit. Countless individuals and companies around the world rely on these rates to settle financial contracts, and this reliance is premised on faith in the fundamental integrity of these benchmarks,” said Aitan Goelman, the director of the enforcement division at the U.S. Commodity Futures Trading Commission (CFTC).

The U.K. Financial Conduct Authority (FCA) fined UBS $371 million, Citibank $359 million, JPMorgan Chase $352 million, The Royal Bank of Scotland (RBS) $344 million, and HSBC $343 million.

Meanwhile, The U.S. Commodity Futures Trading Commission (CFTC) imposed its own monetary penalties, saying in press release on its website: “The Orders collectively impose over $1.4 billion in civil monetary penalties, specifically: $310 million each for Citibank and JPMorgan, $290 million each for RBS and UBS, and $275 million for HSBC.”

Concerning Barclays, U.K.’s financial regulatory body said it would continue with its investigation.

The investigation first began in 2013 when traders working for several major banks were suspected of manipulating rates of more than 100 currencies.

Source: News Express

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