Banks Pay $2.5 Billion, Plead Guilty in FX Spot Market Manipulation Settlement


Citicorp, JPMorgan, Barclays, and The Royal Bank of Scotland (RBS) have agreed to plead guilty to felony charges and pay criminal fines of more than $2.5 billion in connection with the Justice Department’s investigation into manipulation of the foreign currency exchange (FX) spot market.

UBS, the fifth bank in the settlement, agreed to plead guilty to LIBOR manipulation and pay a $203 million criminal penalty for breaching the non-prosecution agreement it entered into with the U.S. Government in December 2012.

The other DOJ fines broken down by bank:

  • Citigroup $925 million;
  • Barclays: $650 million;
  • JPMorgan: $550 million;
  • RBS: $395 million fine; and
  • UBS will pay $203 million.

Barclays will pay an extra $1.3 billion to other regulatory authorities, including the New York Department of Financial Services, the Commodity Futures Trading Commission and the U.K. Financial Conduct Authority.  The CFTC settlement involved its investigation into ISDAfix rate manipulation.

The Federal Reserve also imposed fines of more than $1.8 billion on the five banks.  The fines are among the largest the Federal Reserve has ever assessed.  These fines include:

  • UBS AG: $342 million;
  • Barclays: $342 million;
  • Citigroup: $342 million;
  • JPMorgan Chase: $342 million;
  • RBS: $274 million;
  • Bank of America: $205 million.

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