Top banks pony up large sum for currency manipulation
Five banks have been charged with tampering with foreign exchange rates, and have agreed to pay up to $5.6 billion in fines.
The banks, J.P. Morgan Chase & Co., Citigroup Inc., Barclays PLC, Royal Bank of Scotland Group PLC, and UBS AG have plead guilty to price manipulation.
Charges against individuals at each bank have not been released, but the investigation is still ongoing, according to Attorney General Loretta Lynch. Several bank representatives assert that it was only a select group of employees who were actively involved in the crimes. Investigations reveal that individuals communicated via coded language in private chatrooms to change exchange rates at select times of the day.
Citigroup Inc. is paying the largest of the fines at $925 million for their involvement from 2007 to 2013. UBS AG received partial immunity for being the first to report the misconduct.
The banks will be observed for three years on probation, and new rules will be implemented to detect exchange rate fraud. All the fines will be funneled into the United States Department of Treasury.