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UK Bank Trio Agree $924m Forex-Rigging Bill

By Mark Kleinman,‎ City Editor - Sky News

Barclays, HSBC and RBS have been hit by another massive bill in the mounting FX-rigging scandalBarclays, HSBC and RBS have been hit by another massive bill in the mounting FX-rigging scandal.

Three of Britain's biggest banks were hit with a $924m (£600m) bill for foreign exchange‎-rigging on Thursday, adding to the spiralling cost of one of the industry's biggest trading scandals.

Sky News understands that ‎Barclays, HSBC and Royal Bank of Scotland (RBS) agreed the figures during a US federal court hearing‎.

‎Barclays agreed to pay $384m, HSBC $285m and RBS $255m, according to people familiar with the settlements.

The French bank BNP Paribas and Goldman Sachs, the Wall Street giant, agreed to pay $249m between them.

The outcome is the latest in a string of claims brought on behalf of major multinational companies, pension funds and hedge funds which alleged that they were penalised by efforts to rig foreign exchange markets.

Since regulators around the world opened investigations into forex-rigging, banks including the three UK-based lenders subject to Thursday's settlement have paid big fines for misconduct.

A number of other inquiries, including a criminal probe by the Serious Fraud Office, are ongoing.

"We look forward to presenting these momentous settlement agreements to the federal court for approval, but our work is far from done," said David Scott, managing partner of Scott+Scott, the law firm which brought the action.

"Given our in-depth knowledge based on our success against the banks in the US, Scott+Scott is gearing up to bring the action to Europe."

Sky News revealed earlier this month that the same law firm had engaged a barrister whose clients have included the Chelsea Football Club owner Roman Abramovich to lead a similar action in Europe.

 

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