Six banks to pay $4.33 billion in fines over allegations they manipulated foreign exchange rates

Large banks

Citibank, HSBC, JPMorgan Chase, RBS and UBS will collectively pay $1.4 billion to the U.S. Commodity Futures Trading Commission and about$1.75 billion to the U.K.’s Financial Conduct Authority. UBS will also make a payment in Switzerland. In addition, the U.S. Office of the Comptroller of the Currency said Bank of America, Citibank and JPMorgan Chase will pay a combined $950 in penalties.

Between 2008 and 2013, lax controls at the banks allowed traders to share confidential information and collude with their counterparts at other institutions in an effort to fix rates and increase profits. Regulators said traders used private online chatrooms to coordinate their buying and selling to shift currency prices in their favor, aiming to making a profit for their banks at the expense of clients.

While all five banks face more than $600 million in fines, UBS was also penalized by Swiss regulators, and will pay a total of $800 million. Citibank will pay the second largest total fine at $668 million.

Sources: CNN
REVIEWED: 1/5/2016

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