US DoJ pushing banks to settle forex rate allegations

April 21, 2015 08:53
JP Morgan Chase is among the big banks that have faced allegations of manipulation of the forex markets. Photo: Bloomberg

The US Department of Justice (DoJ) is pushing five big banks to reach settlement next month over charges of manipulation of the foreign exchange markets, Financial Times reported, citing people familiar with the matter.

JPMorgan Chase, Barclays, Citigroup, Royal Bank of Scotland and UBS are the institutions that are in settlement talks with the DoJ, which is demanding most of the banks plead guilty to criminal charges, the report said.

The potential resolution, which could see some institutions pay about US$1 billion each, will mark another step in Wall Street's efforts to put behind it multiple scandals, which have already led to billions of dollars in penalties and several guilty pleas, FT noted.

Last November, six banks agreed to pay US$4.3 billion to authorities in the US, UK and Switzerland in the first settlements announced in the forex investigation.

JPMorgan, Citigroup, UBS and RBS were part of those initial resolutions, but they did not include the DoJ.

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