RBS Preps for FX Settlement Charges with $639Mln Allocation, Company Stock Falls

Several of the financial industry’s leading banks have been engulfed in an ongoing probe alleging FX manipulation – in anticipation of impending regulatory actions, the Royal Bank of Scotland (RBS) Group has allocated $639 million for potential settlements.

Earlier today HSBC made headlines following its contingency measures in the face of looming FX probes – estimated at $378 million. Conversely, other banks such as UBS have made immunity bids with regulators along with their own safety funds to broker settlements.

Back on October 30, Citigroup Inc. incurred a $600 million legal charge for FX related probes, though this appears to be writing on the wall for RBS, which already is in settlement talks with the UK’s Financial Conduct Authority (FCA).

Despite the lack of formal charges presently at RBS and many other banks, several have resorted to suspensions of traders or senior personnel. In addition, the entire industry has faced a steadfast personnel shakeup this past year, as banks look to fortify their Compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term staff and alleviate pressure from global regulators.

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According to 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 Magnates' research, RBS (NYSE:RBS) tumbled over -2.01% today to $12.18 at the time of writing, aided in a large part by analyst downgrades. On Friday, the stock jumped to a 52-week high of $12.47 on a robust earnings release.

Detailing the Q3 Earnings release, RBS revealed a pre-tax profit of $2.08 billion (£1.3 billion) for the quarter. By extension, last October RBS reported a loss of $958.5 million (£600 million) in Q3.