Banks brace for more foreign exchange rigging exposure as civil lawsuits emerge

From YAHOO! Finance –

“Class-action cases are expected to follow vast fines for manipulating currency benchmarks.

Banks are bracing for hundreds of millions of pounds in new claims for foreign exchange manipulation from class-action lawsuits triggered by last week’s vast market rigging fines .

Barclays, Royal Bank of Scotland and four other banks were ordered on Wednesday to pay $6bn (£3.84bn) by UK and US authorities.

The Barclays penalty represents the biggest bank fine in British history.

The regulators, detailing how traders gathered in chatrooms using monikers such as “The Cartel” and “Coiled cobra” to rig the $5.3 trillion-a-day currency market, also forced the banks to plead guilty to criminal charges.

Lawyers say that the fines, as well as an investigation from the European Commission, could be a springboard to damaging civil litigation in the UK and Europe.”

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Why was Deutsche Bank fined a whopping £1.7bn?

From Fund Web –

“Deutsche Bank was handed a total fine of £1.7bn for its involvement in the Libor and Euribor rate-rigging scandal last month – the largest yet – but what led to the record high penalty?

The bank was fined a record £227m by the FCA for manipulating rates. The Department of Justice fined the bank $775m, while the Commodity Futures Trading Commission levied an $800m fine, and the New York Department of Financial Services fined Deustche $600m. The total penalties amount to $2.5bn (£1.7bn).”

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