Barclays Set for Record UK Bank Fine – the Telegraph
The City watchdog is expected to hand out its biggest-ever fine to Barclays on Wednesday as the British bank becomes the last major financial institution to settle foreign exchange rigging allegations in the UK.
New FX Settlements Won’t Spell the End of Banks’ Legal Woes – Profit & Loss(free story)
With a number of major banks expected to agree a settlement with the US Department of Justice (DoJ) this week over allegations of FX market manipulation, could the industry be ready to put this issue to bed and get back to business?
Forex Rigging Settlement: 10 Things You Need to Know – Financial Times(subscription)
A $6 billion settlement between US prosecutors and five banks over allegations they rigged foreign exchange benchmarks is looming. That is in addition to a November deal where banks paid $4.3 billion. Confused? Here are 10 things you need to know about the deal.
Euro Wreaks Havoc on Carry Trades in Rally Almost No One Foresaw –Bloomberg
It was supposed to be so easy. Borrow in euros as the European Central Bank kept interest rates near zero and use the proceeds to invest in the economies where rates are higher, pocketing the difference and generating huge profits.
Taking the DoJ to Task for Telling Other Jurisdictions How to Mind Their House – Profit & Loss (subscription)
What is it about the US and the news cycle? Why is it, every time I am about to embark on a visit to the US, that I am moved to criticise a government agency there?
SNB Says Looking at Franc Rate Against Several Currencies – Reuters
Switzerland’s central bank is monitoring the value of the Swiss franc against a number of currencies and is satisfied with the impact of negative interest rates, one of its board members told local newspapers.
Number One Currency Manipulator – Wall Street Journal (subscription)
Aren’t monetary policy shifts by the Federal Reserve the essence of currency manipulation?
Russia Dirty Float Outed by Traders as Central Bank Sells Rubles – Bloomberg
For all Russia’s talk of a free-floating exchange rate, central bank actions are telling traders it’s still being managed. While the Bank of Russia said its purchases of dollars last week were aimed at replenishing foreign currency reserves, Goldman Sachs and Morgan Stanley see curtailing the world’s biggest currency rally as the real motive.
Bundesbank Sees IMF Decision as Key to Yuan as Reserve Currency –Bloomberg
The International Monetary Fund holds the key to the Chinese yuan becoming an international reserve currency through a review of its Special Drawing Rights basket, according to Bundesbank board member Joachim Nagel.