US/UK: Feds prep for wave of forex settlements

Financial institutions are poised to settle with authorities in both the US and UK accusing the lenders of manipulating the foreign exchange market, say reports.

Barclays, Citigroup, HSBC, JPMorgan, Royal Bank of Scotland and UBS are reportedly looking to settle cases with the UK’s Financial Conduct Authority and the US’s Office of the Comptroller; reports say the US Department of Justice is not expected to be included in the settlement deals.

Further, say reports, Bank of America will reportedly only settle with US regulators and not with the UK’s FCA.

Reports say the settlements, expected to be reached on Wednesday, are the first coordinated settlement deals by the FCA; unnamed sources say no deal is guaranteed, and the number of banks willing to settle could fall.

Further, the sources said, the US Commodity Futures Trading Commission could attempt to get in on the settlement agreements, which would further delay an official announcement.

Sources say fines could total nearly $2.4 billion.

Full content: Financial Times

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