US: Clock starts ticking for forex-rigging banks

The US Department of Justice has given lenders about a month to settle with authorities in its investigation of foreign exchange market manipulation, according to an unnamed source.

The DOJ has been meeting with banks in recent weeks to discuss their liability, and prosecutors are demanding full disclosure of any market manipulation by mid-December, the source said.

The impending closure of the case follows just days after six major financial institutions agreed with authorities in the EU and US to settle allegations of forex manipulation. Citigroup, JPMorgan Chase, UBS and others agreed to pay a combined $4.3 billion to settle the allegations.

Barclays pulled out of those settlements last week.

Federal officials have relied heavily on electronic messages exchanged between traders that allegedly show collusion to rig the foreign exchange market. According to reports, those transcripts were released and show talk of “double teaming” the market as traders refer to themselves as “the 3 musketeers” and “the A-team” while doing so.

Full content: Bloomberg

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