US, Britain fine six top banks nearly $6 bn for forex, Libor abuses

Yahoo – AFP, John Biers, 20 May 2015

The far-flung settlement included guilty pleas from Barclays Bank, JPMorgan

 Chase, Citicorp and the Royal Bank of Scotland for conspiring to manipulate

the massive currency market (AFP Photo/Ben Stansall)

New York (AFP) - US and British regulators fined six major global banks a total of nearly $6 billion between them Wednesday for rigging the foreign exchange market and Libor interest rates.

They said forex traders from the banks had met in an online chatroom brazenly named "the Cartel" to set rates that cheated customers while adding to their own profits in the massive global currencies market.

In the far-flung settlement, Barclays Bank, JPMorgan Chase, Citicorp and the Royal Bank of Scotland all pleaded guilty to US Justice Department charges of conspiring to manipulate the massive currency market.

Switzerland's UBS meanwhile pleaded 

guilty to violating a prior settlement of

 charges for rigging the Libor interest rate 

(AFP Photo/Fabrice Coffrini)

Switzerland's UBS meanwhile pleaded guilty to violating a prior settlement of charges for rigging the Libor interest rate.

And Bank of America was included with the other five in fines levied by the US Federal Reserve in the forex rigging case.

"They acted as partners -- rather than competitors -- in an effort to push the exchange rate in directions favorable to their banks but detrimental to many others," said US Attorney General Loretta Lynch.

"And their actions inflated the banks' profits while harming countless consumers, investors and institutions around the globe."

'The Cartel'

In Wednesday's settlement, the Department of Justice meted out its largest set of antitrust fines ever, assessing $2.5 billion against Barclays, JPMorgan, Citicorp and RBS in the forex case.

Those four, plus UBS and Bank of America, will also pay more than $1.8 billion to the US Federal Reserve over "unsafe and unsound practices" in forex markets.

Barclays, which did not take part in a previous settlement last November with various agencies, was additionally fined more than $1.3 billion by Britain's Financial Conduct Authority, the New York State Department of Financial Services, and the US Commodity Futures Trading Commission.

Combined with a $203 billion Justice Department fine for UBS in the Libor case, and other penalties, the total assessed Wednesday was almost $6 billion.

Regulators described a bold scheme by financial heavyweights to orchestrate trades in the $5.3-trillion-per-day global foreign exchange market.

JPMorgan blamed its role principally on

 a single trader who has been dismissed 

(AFP Photo/John Moore)

Traders from the banks, communicating via the "Cartel" chat room, agreed to withhold bids or offers for euros or dollars at distinct times to protect each other's trading positions, the Justice Department said.

The banks involved represented at least one-fourth of dollar-euro transactions each year and "were uniquely positioned to manipulate the market," said Assistant Attorney General Bill Baer.

A number of traders are facing charges in various countries for their roles in the scheme.

Barclays fined $2.4 billion

The size of penalties on individual banks ranged from the hundreds of millions of dollars to $2.4 billion for British bank Barclays, depending on a bank's involvement in the scheme.

The Barclays sum was high because it had not participated in the November settlement between several banks and the FCA, DFS and CFTC.

Georgina Philippou, the FCA's director of enforcement, called Barclays' role "another example of a firm allowing unacceptable practices to flourish on the trading floor."

Barclays chief executive Antony Jenkins said he regretted that "some individuals" within the bank "have once more brought our company and industry into disrepute."

"This demonstrates again the importance of our continuing work to build a values-based culture and strengthen our control environment," he said.

Citigroup, which had the second largest total fine of $1.3 billion, called the scandal "an embarrassment to our firm, and stands in stark contrast to Citi's values."

Citigroup, which had the second largest

 total fine of $1.3 billion, called the scandal

 "an embarrassment to our firm, and

 stands in stark contrast to Citi's values" 

(AFP Photo/Don Emmert)

Citigroup said it had separately reached an agreement to pay $394 million to settle related private US class action claims.

JPMorgan blamed its role principally on a single trader who has been dismissed.

"The lesson here is that the conduct of a small group of employees, or of even a single employee, can reflect badly on all of us, and have significant ramifications for the entire firm," said JPMorgan chief executive Jamie Dimon.

The Justice Department's $203 million fine against UBS, and $60 million levied on Barclays, related to their violating a 2012 settlement for conspiring to rig Libor, the global commercial interest rate benchmark used to peg millions of rate-sensitive contracts and loans around the world.

But, because it offered early cooperation in the forex rigging case, the Swiss bank earned conditional immunity from those charges.

In a settlement announced by the US Justice Department on Wednesday, the banks

agreed to pay close to $6 billion (5.3 billion euros) in fines for their manipulations.

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Six top banks fined for forex, Libor abuses


"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy,Recalibration Lectures, God / Creator, Religions/Spiritual systems (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it), Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse), Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) -(Text version)

“… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …”