Five Major Banks Agree to Parent-Level Guilty Pleas – Department of Justice (press release)
Five major banks – Citicorp, JP Morgan Chase, Barclays, the Royal Bank of Scotland and UBS – have agreed to plead guilty to felony charges. Citi, JPM, Barclays and RBS have agreed to plead guilty to conspiring to manipulate the price of US dollars and euros exchanged in the FX spot market and the banks have agreed to pay criminal fines totalling more than $2.5 billion. A fifth bank, UBS, has agreed to plead guilty to manipulating Libor and other benchmark interest rates and pay a $203 million criminal penalty, after breaching its December 2012 non-prosecution agreement resolving the LIBOR investigation.
Attorney General Lynch Delivers Remarks at a Press Conference on FX Spot Market Manipulation (press release)
Today’s historic resolutions are the latest in our ongoing efforts to investigate and prosecute financial crimes, and they serve as a stark reminder that this Department of Justice intends to vigorously prosecute all those who tilt the economic system in their favour; who subvert our marketplaces; and who enrich themselves at the expense of American consumers.
Assistant Attorney General Bill Baer Remarks on FX Spot Market Manipulation (press release)
Today’s guilty pleas to criminal charges represent major developments in our investigation into collusion affecting foreign exchange markets, particularly the spot market for trading US dollars and euros. The antitrust guilty pleas announced today involving four major international financial institutions – Citicorp, JP Morgan Chase, The Royal Bank of Scotland and Barclays – are without precedent.
Assistant Attorney General Leslie Caldwell Remarks on FX Spot Market Manipulation (press release)
The guilty pleas of five major financial institutions – from the US and overseas – are truly historic. The guilty plea to be entered by UBS results from the bank’s breach of its non-prosecution agreement with the department through additional criminal conduct. Due to its breach, UBS will plead guilty to felony wire fraud for its Libor-related misconduct and pay a $203 million criminal penalty.
Remarks by FBI’s Andrew McCabe on FX Spot Market Manipulations (press release)
Today’s resolution represents the results of a 19-month investigation into manipulation of the foreign exchange market. The criminality occurred on a massive scale as individual traders at the bank communicated in code in exclusive chat rooms to set price fixing on a daily basis.
Benjamin Lawsky, Sheriff of Wall Street, is Taking Off His Badge – NY Times
It has been a grim few years for the banks that Benjamin Lawsky regulates. He threatened to pull their licenses, fined them hundreds of millions of dollars and forced dozens of their employees to resign. Now, much to Wall Street’s delight, the New York State regulator will be leaving government to start his own legal and consulting firm.
Lord Hill Urges Rapid Rate-Rigging Rule Approvals – Financial News(subscription)
Lord Hill, the new EU commissioner for financial services, this week called for swift approval of new rules designed to make it harder to rig financial benchmarks, which are about to enter an arcane EU lawmaking process known as the trialogue.