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US: Citigroup Pressed by DOJ in forex case

By  |  April 6, 2015

Citigroup Inc’s main banking subsidiary, Citigroup NA, is being encouraged to plead guilty to a felony. Sources privy to the matter told Bloomberg that the DOJ seeks for Citigroup to plead guilty on a case relating to the rigging of foreign exchange markets. Citibank has countered with an offer that the guilty plea would come from one of its small subsidiaries instead of Citibank NA.

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    Authorities from the government have accused dealers of sharing sensitive and confidential information of client orders. They are further accused of coordinating trades to increase their own profits.

    If the main unit pleads guilty, its ability to operate in certain businesses might be threatened. The Justice Department has been investigating this currency manipulation case for a long time. Banks involved in the alleged manipulation have been pressed to resolve the case with a settlement.

    It is believed that an agreement might soon be reached, possibly in May 2015; a maximum fine of $1 billion might be imposed, as per the sources.

     

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