This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-32817114
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Record fines for currency market fix | Record fines for currency market fix |
| (35 minutes later) | |
| Five of the world's largest banks are to pay fines totalling $5.7bn (£3.6bn) for manipulating the foreign exchange market. | |
| Four of the banks - JPMorgan, Barclays, Citigroup and RBS - have agreed to plead guilty to US criminal charges. | |
| The fifth, UBS, will plead guilty to rigging benchmark interest rates. | The fifth, UBS, will plead guilty to rigging benchmark interest rates. |
| Barclays was fined the most, $2.4bn, as it did not join other banks in November to settle investigations by UK, US and Swiss regulators. | Barclays was fined the most, $2.4bn, as it did not join other banks in November to settle investigations by UK, US and Swiss regulators. |
| Barclays is also sacking eight employees involved in the scheme. | |
| US Attorney General Loretta Lynch said that "almost every day" for five years from 2007, currency traders used a private electronic chat room to manipulate exchange rates. | US Attorney General Loretta Lynch said that "almost every day" for five years from 2007, currency traders used a private electronic chat room to manipulate exchange rates. |
| Their actions harmed "countless consumers, investors and institutions around the world", she said. | Their actions harmed "countless consumers, investors and institutions around the world", she said. |
| Cartel threat | Cartel threat |
| Regulators said that between 2008 and 2012, several traders formed a cartel and used chat rooms to manipulate prices in their favour. | Regulators said that between 2008 and 2012, several traders formed a cartel and used chat rooms to manipulate prices in their favour. |
| One Barclays trader who was invited to join the cartel was told: "Mess up and sleep with one eye open at night." | One Barclays trader who was invited to join the cartel was told: "Mess up and sleep with one eye open at night." |
| Several strategies were used to manipulate prices and a common scheme was to influence prices around the daily fixing of currency levels. | Several strategies were used to manipulate prices and a common scheme was to influence prices around the daily fixing of currency levels. |
| A daily exchange rate fix is held to help businesses and investors value their multi-currency assets and liabilities. | A daily exchange rate fix is held to help businesses and investors value their multi-currency assets and liabilities. |
| 'Building ammo' | 'Building ammo' |
| Until February, this happened every day in the 30 seconds before and after 16:00 in London and the result is known as the 4pm fix, or just the fix. | Until February, this happened every day in the 30 seconds before and after 16:00 in London and the result is known as the 4pm fix, or just the fix. |
| In a scheme known as "building ammo", a single trader would amass a large position in a currency and, just before or during the fix, would exit that position. | In a scheme known as "building ammo", a single trader would amass a large position in a currency and, just before or during the fix, would exit that position. |
| Other members of the cartel would be aware of the plan and would be able to profit. | Other members of the cartel would be aware of the plan and would be able to profit. |
| "They engaged in a brazen 'heads I win, tails you lose' scheme to rip off their clients," said New York State superintendent of financial services Benjamin Lawsky. | "They engaged in a brazen 'heads I win, tails you lose' scheme to rip off their clients," said New York State superintendent of financial services Benjamin Lawsky. |
| The fines break a number of records. The £284m fine imposed on Barclays by Britain's Financial Conduct Authority was a record by the regulator. | |
| Meanwhile, the $925m fine imposed on Citigroup by the Department of Justice was the biggest penalty for breaking the Sherman Act, which covers competition law. |