Private Investors vs Major Banks Could See Goldman Sachs as Next to Settle

Goldman Sachs is set to be the next major financial institution to settle its part in a class action lawsuit of private investors against banks for their part in manipulating FX currency rates. The lawsuit followed investigations by global regulators into manipulation of FX prices which culminated in over $3 billion in fines issued by the FCA, CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term, and FINMA in November 2014. Despite the regulatory fines, banks have found themselves also targeted in civil cases with private investors who have claimed that the manipulation of FX prices across the firms has affected their order executions negatively.

According to a source to MarketWatch, Goldman Sachs is expected to be nearing a $129.5 million Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term in the lawsuit. Their settlement would come on the heels of a $180 million payment by Bank of America in April. Earlier in the year, JPMorgan and UBS had also arranged to settle, paying $99.5 million and $135 million respectively. The case had been led by attorneys Scott and Scott and Hausfeld LLP. In Goldman Sach’s case, the firm is expected to come to a solution in the next few weeks.

With regulators having already issued fines, banks may feel hard pressed to settle than go to court to battle against the claims against them. It will be interesting to see whether any of the other banks named in the lawsuit which also include Citigroup, Morgan Stanley and Deutsche Bank will take the case to court in replace of settling with the litigants.