UK bank hit with $150 million fine – told to fire employee

Barclays fined $150m for electronic FX trading misconduct

From Finextra –

“Barclays has been slapped with a $150 million fine by New York State’s financial regulator and told to fire an employee over an automated system used to reject unprofitable client orders on its electronic foreign exchange trading platform.

Barclays employed a system called 'Last Look' on its FX trading platform which placed a milliseconds-long hold period between a client placing an order and it being executed by the bank.

The delay was designed to be a defensive bulwark against high-frequency traders using their more nimble systems to outflank market makers like Barclays and acting on price information with "toxic flow" orders”.

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JPMorgan to Pay $166 Million Over Debt-Collection Abuses

From GARP –

“JPMorgan Chase & Co. will pay $166 million and change credit-card collection practices after regulators found that the bank used abusive tactics to collect debts, the Consumer Financial Protection Bureau said on Wednesday.

The company agreed to resolve claims that its Chase Bank USA and Chase Bankcard Services Inc. units pursued the wrong borrowers, sought incorrect amounts or so-called zombie debt that was too old, or relied on documents with improper signatures, according to a CFPB statement.

Of the penalties, $136 million settles claims brought by the Consumer Bureau, 47 states and the District of Columbia. The Office of the Comptroller of the Currency imposed a $30 million penalty in a related action, CFPB said.”

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20 global banks have paid $235bn in fines since the 2008 financial crisis

From International Business Times –

“Twenty of the world's biggest banks have paid more than $235bn (£151.71bn) in fines and compensation in the last seven years for breaching a variety of financial regulations, according to Reuters.

The financial institutions have been fined for misdeeds ranging from manipulation of currency and interest rate markets and compensating customers who were wrongly sold mortgages in the US or insurance products in Britain.

The main offenders were Bank of America, which faced by far the largest levy of around $80bn since 2008, and JP Morgan, paying up to $20m

In total, the banks were fined $141bn for mis-selling US mortgages and $44bn in compensation to UK customers.”

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