Deutsche Bank Agrees $190 Million Settlement in US FX Rigging Lawsuit

German banking giant Deutsche Bank has agreed to pay $190 million in penalties to settle its involvement in an antitrust lawsuit alleging that the lender’s traders routinely manipulated the forex market for their own profit. The preliminary cash 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 with investors was disclosed in papers filed in the US District Court in Manhattan on Friday, and requires a judge’s approval. While it is not clear what the final payment will be, a fine as high as $190 million could easily be borne by Deutsche and the announcement did not rock investor confidence. The bank’s shares rose as much as 1.6 percent on Friday. Deutsche Bank joins a line of global banks that have settled this year, with total payouts to investors now amounting to more than $2.3 billion, court papers show. The settlement announced last month concerns Morgan Stanley ($50 million), RBC ($15.5 million), Société Générale ($18 million), Standard Chartered ($17.2 million) and Bank of Tokyo-Mitsubishi UFJ ($10.5 million). In agreeing to settle, the banks have denied wrongdoing. Other defendants include Bank of America, Barclays, BNP Paribas, Citigroup, Goldman Sachs, HSBC, JPMorgan Chase, Royal Bank of Scotland and UBS. In their complaint, investors including hedge and pension funds accused the 16 banks, which controlled more than 80 percent of the global 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, of having conspired since 2007 in chat rooms, instant messages and emails to manipulate the WM/Reuters closing spot rates. The US authorities opened its FX probe of the German lender back in 2014, focusing on conduct using their electronic trading platforms. The investors said that traders used chat rooms with names such as ‘The Cartel’, ‘The Bandits’ Club’ and ‘The Mafia’ to swap confidential orders, and set prices through manipulative tactics with colorful names such as ‘front running’, ‘banging the close’ and ‘painting the screen’.