Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Barclays fined $2.4 billion for FX manipulation, to fire eight staff

Published 21/05/2015, 01:36
© Reuters. A "no parking" road sign is seen in front of a Barclays branch in downtown Rome
BARC
-

LONDON (Reuters) - Barclays Plc (L:BARC) pleaded guilty to a U.S. criminal charge and was fined $2.4 billion (1.5 billion pounds) by U.S. and British authorities on Wednesday for manipulating foreign exchange rates.

The British bank also agreed to fire eight employees as a result of the settlement, according to the New York Department of Financial Services (NYDFS).

The bank will pay $710 million to the U.S. Department of Justice, $485 million to the NYDFS, $400 million to the Commodities Futures Trading Commission and $342 to the U.S. Federal Reserve. It was also fined a record 284 million pounds, or $441 million, by Britain's Financial Conduct Authority.

Barclays was one of five banks to be fined a total of $5.7 billion by authorities on Wednesday. Its fine was far higher than the other banks, as it did not take part in a group settlement in November, because it wanted to include the powerful NYDFS in its settlement.

Barclays had set aside $3.2 billion for potential fines related to past FX trading. It could face further punishment related to electronic systems used in FX trading, which the NYDFS said it will continue to investigate.

Benjamin Lawsky, New York superintendent of financial services, said a number of Barclays employees involved in the misconduct were no longer employed by the bank and four were fired last month, including its global head of FX spot trading in London and a director on the FX spot trading desk in New York.

© Reuters. A "no parking" road sign is seen in front of a Barclays branch in downtown Rome

Lawsky ordered the bank to fire another four staff who it still employed, including a vice president on the emerging markets trading desk in New York and two directors on the FX spot trading desk in New York.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.