LIVE: Barclays hammered with a $2.4 billion rate rigging fine
JP Morgan, Citigroup, Barclays, and Royal Bank of Scotland, are expected to get hit with criminal charges from the Department of Justice related to forex manipulation.
The London Interbank Offered Rate is a benchmark interest rate used around the world and calculated based on the interest rates set by all the major banks in London.
The scandal, which peaked in 2008, involved a handful of those banks allegedly fixing the rate by colluding and sharing information on what rates they would each set.
"[I]ts just amazing how libor fixing can make you that much money," one RBS trader said in a chatroom, according to a CFTC transcript. "Pure manipulation going on," said another.
UBS already announced it will pay $545 million to settle allegations earlier on Wednesday.
Attorney General Lorretta Lynch is expected to announce resolutions at 10 am on Wednesday, and we'll have all the details here for you as they roll in, bank by bank.
UBS
- In 2012, UBS decided to fess up first and cooperate with a DOJ investigation in order to avoid criminal charges in connection with currency rigging.
- Total fines: $545 million. Here's the breakdown:
- $342 in the currency case (no criminal charges)
- $203 million for manipulating the LIBOR benchmark rate
Barclays
- Total fines: $2.4 billion
- Eight additional employees fired for their roles in forex manipulation
- Fine breakdown:
- $485 million to the New York State Department of Financial Services
- $400 million to the CFTC
- $710 million to the Justice Department
- $342 million to the Federal Reserve
- £284 million ($441 million) to the UK's Financial Conduct Authority
- "If you aint cheating, you aint trying," one Barclays employee reportedly said, according to the NY Department of Financial Services.
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