World's big banks set to be sued in London over forex rigging

From The Independent –

“The world’s biggest banks face being pursued through the UK civil courts this autumn for billions of pounds in compensation payments for the actions of its traders in rigging foreign exchange rates.

Five multinational banks – which include Britain’s Royal Bank of Scotland, Barclays and HSBC – agreed this week to pay off aggrieved investors in order to settle a class action brought in New York.

They joined four other global banks that settled earlier in the year. The total compensation pledged to investors, which are made up of hedge funds and pension funds, has now reached $2bn, according to Hausfeld, the law firm that brought the case on behalf of the investors.”

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Royal Bank of Scotland’s payments problem

From Bob’s Guide –

“RBS recently experienced a banking glitch meaning that 600,000 delayed banking payments did not show up in customer accounts. The outage affected customers across all four of its brands: NatWest, RBS, Ulster Bank and Coutts. This isn’t the first time RBS has fallen foul of technical problems; it’s actually the fifth time in three years. The IT glitch continues to have repercussions with customers now claiming they can’t switch their accounts away from RBS as a result.

Spokespeople for the bank urged concerned customers to get in touch via their local branch or through a call centre, but it was Twitter that was bombarded with angry tweets from customers:

• @KrisScally1: 2 days in a row that money has not went into my account @RBS_Help should give everyone affected a good will gesture #skint
• @NickiDaldry: @RBS_Help can't wait to tell my kids when they get home from school, we can't spend any money at the school fair because We've not been paid.”

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Technical Glitch at Royal Bank of Scotland: Alarm for Others?

From Zacks –

“Troubles do not seem to end at The Royal Bank of Scotland Group plc (RBS - Snapshot Report). The company, presently under investigation by the U.S. Department of Justice for alleged manipulation of foreign exchange rates, was hit by a massive technical collapse on Jun 16.

Reportedly, failure of the company’s “batch-processing systems” prohibited the ingesting of a payment’s file from a third-party provider. Subsequently, the system failed to process roughly 600,000 direct debit and credit transactions. Additionally, the technological glitch has affected customers not only at Royal Bank of Scotland but also at its subsidiaries – National Westminster Bank Plc (Natwest) and Ulster Bank Ltd. The mishap will be subject to investigations by Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”) in UK.”

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