7th May 2015 05:26
NEW YORK CITY (Alliance News) - Four big banks are expected to plead guilty to rigging foreign-currency exchange rates and pay billions in combined penalties as part of settlement agreements expected to be announced as early as next week, the Wall Street Journal reported citing people familiar with the matter.
The report indicated that US prosecutors are preparing to announce separate settlements simultaneously with Citigroup Inc, Barclays PLC, JPMorgan Chase & Co and The Royal Bank of Scotland Group PLC. The banks are expected to plead guilty to criminal antitrust charges for alleged collusion by traders in foreign-currency markets.
UBS AG also is expected to reach a settlement but will receive immunity from prosecution.
While the Justice Department's fraud investigators made a big push to build criminal cases against individuals related to the alleged manipulation of foreign-exchange rates, the agency doesn't plan to announce any criminal charges against individual traders next week. Those criminal probes are ongoing and individuals could be charged later, the report said.
According to the report, the Justice Department's global probe has examined whether traders manipulated exchange rates to benefit their own positions, at times to the detriment of their customers. The planned deals also will include settlements with the Federal Reserve, these people said. The penalties are expected to vary depending on each bank's role in the alleged collusion, ranging from several hundred million dollars to more than USD1 billion.
Barclays is expected to pay more than USD1 billion to a variety of agencies to settle its case, including US and European authorities.
Copyright RTT News/dpa-AFX
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