Banks hit by record fine for rigging forex markets | Business | The Guardian

Banks hit by record fine for rigging forex markets | Business | The Guardian:



"The reputation of the banking industry took another hammering on Wednesday as the fines imposed on major banks – including Barclays and bailed-out Royal Bank of Scotland – for rigging foreign exchange markets topped £6.3bn.



The US Department of Justice accused the industry of “breathtaking flagrancy” as, along with other regulators on both sides of the Atlantic, it imposed a record $5.7bn (£3.7bn) of punishments on six banks. The new fines followed£2.6bn of penalties announced in November for manipulation of the £3.5tn a day currency markets.



Barclays was fined £1.5bn by five regulators, including a record £284m by the UK’s Financial Conduct Authority. The FCA will hand its fine to the chancellor, George Osborne. Yet Barclays’ stock market value rose by £1.5bn as a result of a 3% rise in its share price amid relief the fine was not even larger. RBS’s shares also rose 1.8%. The increases came even though the regulators said there could be more fines to come."



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