Tag: Citibank

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Article: London Court Hears £1B Forex-Rigging Case Against Five Banks

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London Court Hears £1B Forex-Rigging Case Against Five Banks

Aziz Abdel-Qader, 05 November 2019

The case accusing Barclays, Citigroup, JPMorgan, Royal Bank of Scotland, and UBS of foreign exchange rigging is scheduled to be heard at London’s tribunal on Wednesday.

The five global banks are facing a £1 billion ($1.3 billion) class-action lawsuit that seeks to compensate pension funds, asset managers, hedge funds, and corporations that lost out because these banks participated in a market manipulation scheme between 2007 and 2013. However, the total value of potential fines will depend on the number of forex trades executed in London, and the proportional impact of rate-rigging on GBP trades. Continue reading “Article: London Court Hears £1B Forex-Rigging Case Against Five Banks”

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Article: Barclays, RBS and other banks face £1bn forex rigging lawsuit

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Barclays, RBS and other banks face £1bn forex rigging lawsuit

Sean Farrell, 29 July 2019

Barclays, Royal Bank of Scotland and three other banks are being sued by investors for at least £1bn over rigging of the foreign exchange market in a test case for US-style class actions in the UK.

A US law firm that specialises in stock market litigation has filed the claim at the Competition Appeal Tribunal. The claim also targets US investment banks JP Morgan and Citigroup, and Switzerland’s UBS. The legal action follows the European commission’s decision in May to fine five banks more than €1bn (£910m) for colluding to reduce competition in markets for 11 currencies, including the US dollar, the euro and the pound.

Cartels of traders with names such as the “Three-Way Banana Split” operated on chatrooms to rig the multitrillion-dollar foreign exchange market. UBS, which informed the commission about the collusion, was not fined but Japan’s MUFG received a penalty. Continue reading “Article: Barclays, RBS and other banks face £1bn forex rigging lawsuit”

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Article: JPMorgan, UBS among five banks facing £1 billion FX-rigging suit

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JPMorgan, UBS among five banks facing £1 billion FX-rigging suit

Bloomberg, 29 July 2019

London: JPMorgan Chase & Co and UBS Group AG are among five banks being sued over allegations of foreign-exchange rigging in a class-action lawsuit seeking more than £1 billion ($1.2 billion, Dh4.4 billion).

Barclays Plc, Citigroup Inc and Royal Bank of Scotland Group Plc are also among the targets of the UK suit that will say pension funds, asset managers, hedge funds and corporations lost out because of market manipulation between 2007 and 2013 and should be compensated.

The lawsuit centres on collusion on foreign-exchange trading strategies, for which the European Commission fined Barclays, RBS, Citigroup, JPMorgan and Mitsubishi UFJ Financial Group, Inc a total of €1.07 billion ($1.2 billion) in May. UBS escaped a fine because it was the first to tell regulators about the collusion. Continue reading “Article: JPMorgan, UBS among five banks facing £1 billion FX-rigging suit”

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Fined: Citigroup Global Markets Inc. Fined by FINRA (July 2019)

Fined

Citigroup Global Markets Inc. Fined by FINRA

8 July 2019

An AWC was issued in which the firm was censured and fined $55,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report reportable options positions to the large options position reporting (LOPR) system due to a programming error in connection with accounts acting in-concert, and failed to report proprietary positions as acting-in-concert, because of a design flaw in its reporting logic. The findings stated that the firm reported positions to the LOPR in the wrong format and with an incorrect effective date.

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Fined: Citigroup Global Markets Inc. Fined by FINRA (June 2019)

Fined

Citigroup Global Markets Inc. Fined by FINRA (June 2019)

20 June 2019

An AWC was issued in which the firm was censured, fined $225,000 and ordered to pay $152,488.59, plus interest, in restitution to customers, which the firm has already paid. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to identify and apply sales charge discounts to certain eligible purchases of unit investment trusts (UITs). The findings stated that this resulted in customers paying excessive sales charges of $152,488.59.

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Article: Swiss regulator to fine banks €80m over foreign exchange cartel

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Swiss regulator to fine banks €80m over foreign exchange cartel

The Irish Times, 06 June 2019

Four British and US banks will be fined about 90 million Swiss francs (€80m) this week by Switzerland’s competition authority for colluding to rig foreign exchange markets, weeks after the European Union handed out €1 billion of penalties for similar misconduct.

Weko, as the Swiss regulator is known, found that traders at Barclays, JPMorgan, Citigroup and Royal Bank of Scotland worked together in a cartel-style arrangement to manipulate currency prices for their own gain, according to people briefed on the decision. Continue reading “Article: Swiss regulator to fine banks €80m over foreign exchange cartel”

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Article: THE FALLOUT FROM RUSSIAN MONEY LAUNDERING CONTINUES TO GROW FOR EUROPEAN BANKS

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THE FALLOUT FROM RUSSIAN MONEY LAUNDERING CONTINUES TO GROW FOR EUROPEAN BANKS

Nicholas Larsen, International Banker, 20 May 2019

On April 5, Lars Idermark resigned from his position as the chairman of Swedbank, headquartered in Sweden. Idermark stepped down from his position only a week after the chief executive officer, and previously the supervisor of Swedbank operations in the Baltic states, Birgitte Bonnesen, was fired. The moves come amid sweeping allegations that Sweden’s oldest bank was involved in laundering billions of dollars’ worth of Russian money. In particular, the lender’s Baltic units have been named as being complicit in handling illegal funds from Russia as well as other smaller former Soviet countries. Continue reading “Article: THE FALLOUT FROM RUSSIAN MONEY LAUNDERING CONTINUES TO GROW FOR EUROPEAN BANKS”

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Article: Citi, JPMorgan, UBS face forex class action over ‘Mafia’ chat rooms

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Citi, JPMorgan, UBS face forex class action over ‘Mafia’ chat rooms

Peter Vercoe, 28 May 2019

Citigroup, Royal Bank of Scotland Group and JPMorgan Chase are among five banks named in a class action lawsuit in Australia seeking damages for colluding on foreign-exchange trading strategies.

UBS Group and Barclays were also named in the suit lodged on Monday in the Federal Court by Maurice Blackburn Lawyers. The action says the banks colluded to rig foreign exchange rates, boosting profits at the expense of Australian businesses and investors, the law firm said in a statement. Continue reading “Article: Citi, JPMorgan, UBS face forex class action over ‘Mafia’ chat rooms”

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Article: Five Banks Face Lawsuit In Australia for FX Collusion

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Five Banks Face Lawsuit In Australia for FX Collusion

finews asia, 27 May 2019

UBS and Royal Bank of Scotland are among five banks named in a class action lawsuit in Australia relating to collusion on foreign-exchange strategies.

Australian law firm Maurice Blackburn on Monday filed a class-action lawsuit against the five international investment banks, accusing them of colluding to rig foreign exchange rates during 2008-2013 so they can profit. They are UBS, Barclays Bank, Citigroup, Royal Bank of Scotland (RBS) and J.P. Morgan. Continue reading “Article: Five Banks Face Lawsuit In Australia for FX Collusion”

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Article: Citi, JPMorgan, UBS Face Forex Cartel Class Action in Australia

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Citi, JPMorgan, UBS Face Forex Cartel Class Action in Australia

Peter Vercoe, 27 May 2019

Citigroup Inc., Royal Bank of Scotland Group Plc and JPMorgan Chase & Co. are among five banks named in a class action lawsuit in Australia seeking damages for colluding on foreign-exchange trading strategies. UBS Group AG and Barclays Plc were also named in the suit lodged Monday in the Federal Court by Maurice Blackburn Lawyers. The action claims the banks colluded to rig foreign exchange rates boosting profits at the expense of Australian businesses and investors, the law firm said in a statement. Continue reading “Article: Citi, JPMorgan, UBS Face Forex Cartel Class Action in Australia”

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Article: UK banks fined €1bn by EU for rigging foreign exchange market

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UK banks fined €1bn by EU for rigging foreign exchange market

Kalyeena Makortoff, 16 May 2019

Five banks including Barclays and Royal Bank of Scotland have been fined more than €1bn (£875m) by the European Union for rigging the multitrillion-dollar foreign exchange market.

The European commission said the banks, which also include Citigroup, JP Morgan and MUFG (Mitsubishi UFJ Financial Group), formed two cartels to manipulate the spot foreign exchange market for 11 currencies, including the US dollar, the euro and the pound.

The commission’s penalty adds to the £1.3bn in fines imposed by the UK Financial Conduct Authority in 2014 over the same case. While the FCA’s penalty focused on the lender’s breach of regulations, the EU’s fine deals with how their behaviour dampened competition.

“These cartel decisions send a clear message that the commission will not tolerate collusive behaviour in any sector of the financial markets,” the European competition commissioner, Margrethe Vestager, said in a statement.

The banking industry has been hit with billions in fines worldwide over the last decade for rigging benchmarks used in many day-to-day financial transactions, and are now at risk of private lawsuits.

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Article: Factbox: European banks hit by Russian money laundering scandal

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Factbox: European banks hit by Russian money laundering scandal

Reuters Staff, 08 March 2019

Several European banks are facing allegations of being involved in a Baltic money laundering scandal and failing to prevent tainted Russian money from flowing through their branches across the world. Continue reading “Article: Factbox: European banks hit by Russian money laundering scandal”

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Article: UBS agrees to pay $68M in multistate settlement over Libor manipulation claims

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UBS agrees to pay $68M in multistate settlement over Libor manipulation claims

Declan Harty, 21 December 2018

UBS AG agreed to pay $68 million as part of settlement with 39 U.S. states and the District of Columbia related to the Swiss banking giant’s alleged manipulation of the London interbank offered rate.

Led by New York Attorney General Barbara Underwood, the UBS settlement is the latest in a string of agreements state regulators have recently reached with banks that were allegedly altering Libor submissions for their own benefit leading up to and around the financial crisis of 2008.

UBS was accused of misrepresenting its U.S. dollar-tied Libor submissions to protect its reputation, according to a press release from Underwood’s office. The 40 attorneys general who were part of the settlement also claimed UBS manipulated Yen Libor submissions to favor its derivative trading positions. Continue reading “Article: UBS agrees to pay $68M in multistate settlement over Libor manipulation claims”

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Article: EU Regulators Charge Credit Suisse with Rigging FX Markets

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EU Regulators Charge Credit Suisse with Rigging FX Markets

Celeste Skinner, 01 August 2018

Credit Suisse Group AG announced on Tuesday that it has been charged by European Union antitrust regulators with manipulating forex rates. The charges signal the five-year-long investigation might be coming to a close in the near future.

In a regulatory filing, the allegations state that Credit Suisse “engaged in anti-competitive practices in connection with its foreign exchange trading business.” Now, the Wall Street bank will need to wait and see if the EU regulators will impose a fine, which could be up to 10% of its global turnover. Continue reading “Article: EU Regulators Charge Credit Suisse with Rigging FX Markets”

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Article: Deutsche Bank fined $205 million for currency manipulation

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Deutsche Bank fined $205 million for currency manipulation

APNews, 20 June 2018

New York regulators are slapping a $205 million fine on Deutsche Bank, following allegations that traders at Deutsche manipulated the foreign exchange market for years.

Deutsche Bank is the latest Wall Street firm to face penalties for manipulating the $5.3 trillion currency market. Banks such as Barclays, Citigroup and several others have paid hundreds of millions of dollars in fines since the scandal broke several years ago. Continue reading “Article: Deutsche Bank fined $205 million for currency manipulation”

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