Banks settle currency manipulation claims for $111m

Source: The Daily Telegraph | Author: Tim Wallace

Five more banks have agreed to pay a total of $111m to settle claims that they manipulated currency markets, as the foreign exchange scandal continues to haunt the finance industry.

Lawyers behind the claims in the US hope to bring similar cases to the courts on this side of the Atlantic in the near future.

Investors accused the banks of manipulating the currency markets, typically to the benefit of traders rather than their clients.

The banks denied the claims and five more have now reached a settlement, taking the total number to settle to 14 of the 16 accused.

British-based bank Standard Chartered, which specialises in working in emerging markets, paid $17.2m towards the total.

US investment bank Morgan Stanley was the biggest contributor, paying $50m to settle the case.

Societe Generale paid $17.2m, Royal Bank of Canada settled for $15.5m and Bank of Tokyo-Mitsubishi UFJ was left with a bill of $10.5m.

It comes on top of the $2bn paid by nine banks in October 2015, which included payouts by Barclays, HSBC, Royal Bank of Scotland, JP Morgan and Goldman Sachs.

“We are very pleased that fourteen of the sixteen banks have decided to offer cooperation and billions to victims in the United States,” said David Scott at law firm Scott+Scott which represents the claimants against the banks.

“We look forward to focusing our claims on the two remaining defendants in the US. We will bring this experience to bear as we assemble our claims in Europe. With a significant group already formed we are confident of bringing a material claim against banks across Europe and obtaining relief for our clients in other countries.”

The settlements also agree that the banks will cooperate with the claimants, including by providing transaction data, documents and witness interviews which the lawyers hope will give them more information when considering building other lawsuits.

Deutsche Bank and Credit Suisse are both still engaged in the legal case, said Scott and Scott.

The banks declined to comment.

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