PRESSBOX

UK investors could start forex lawsuits after banking trio settle for $1bn in US

The Daily Telegraph

Barclays will pay $384m, RBS $255m and HSBC $285m to settle claims they rigged foreign exchange markets

British investors could soon begin legal action against banks accused of rigging foreign exchange markets, after Barclays, Royal Bank of Scotland and HSBC paid a combined total of almost $1bn (£650m) to settle claims in the US.

The trio agreed to pay hundreds of millions of dollars each to end civil claims in New York brought by global companies, pension funds and hedge funds.

Barclays will pay $384m, RBS $255m and HSBC $285m.

American bank Goldman Sachs has agreed a sum of $135m, while French lender BNP Paribas will settle for $115m.

The agreements are separate from proceedings led by US and British regulators, including the Serious Fraud Office.

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

"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.

"Compensation figures today should serve as an indication of the scale of the potential European action as the UK [foreign exchange] market is almost double the size of that in the US."

As part of the settlement, first reported by Sky News, the banks are required to provide Scott+Scott with descriptions of their actions, documents, witness interviews, depositions and trial testimony. They must also offer "extensive" cooperation against lenders that have yet to settle similar claims.

A total of nine banks have now settled forex-rigging claims in the US for a total of more than $2bn.

 

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