Barclays' Settlement with Authorities on Forex Manipulation Scandal to Exceed £500 Million

After initially being excluded from the $3.3 billion settlement regulators have reached with major banks in their Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market probe, Barclay’s Plc has allocated £500 million to settle future allegations. Now it turns out that this figure may not be sufficient. "My expectation is it will be a bigger number than that," the Bank’s Chief Executive Officer Anthony Jenkins said in an interview on Sky News.

Last month, the London-based bank had explained that it was not part of the agreement because “it is in the interests of the company to seek a more general coordinated settlement.”

According to Reuters, the reason is to be found in complications with the New York State Department of Financial Services, the state's regulator. The Financial Conduct Authority (FCA) Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) has also said in a statement last month that it is still investigating the company’s G10 spot FX trading business and “also wider FX business areas.”

In yesterday’s interview, however, Jenkins was hopeful that all probes into the bank’s involvement in the forex market will be settled "in the course of next year."

Risking the System's Integrity

The global investigation has found that some of the world's biggest banks have been colluding on FX prices during the key 4PM GMT London Fix. Citibank, JP Morgan, HSBC, UBS and the Bank of Scotland have all been hit with substantial fines, and a blow to their credibility and reputation.

For a period of three years, in chat groups with names such as ”The Cartel” and “The Bandits’ Club,” bank traders shared information with competitors, allowing them to execute their own trades before filling client orders. Bankers in a number of countries have already been suspended or fired as the investigations continue to expand over time.

"The banks undermined confidence in the UK financial system and put its integrity at risk,” as the FCA had said at the time.