A PYMNTS Company

US: Federal Reserve joins forex scrutiny

By  |  January 13, 2014

The Federal Reserve is reportedly investigating allegations that some of the world’s largest banks manipulated foreign exchange benchmark rates, a probe that follows similar action taken by the US Department of Justice, the UK Financial Conduct Authority and the Swiss Competitions Commission.

According to an unnamed source, the Fed launched their own investigation into the market worth $5.3 trillion around the world every day. The Fed has the ability to issue fines against the investigated banks, which include Deutsche Bank, Citigroup, Barclays and UBS, should evidence of forex rate manipulation be found.

The scandal comes close on the heels of the international LIBOR benchmark rate-rigging scandal, which yielded billions in fines.

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.