European banks under fire in global forex probe

UBS, Deutsche Bank and Barclays are working with authorities over possible manipulation of forex trading rates.

LONDON (CNNMoney)

In the past two days, UBS (UBS), Deutsche Bank (DB) and Barclays (BCBAY) have issued statements acknowledging requests from authorities and are co-operating with their investigations.

Barclays and UBS also said they are conducting internal reviews of their forex trading businesses.

A fourth bank, Royal Bank of Scotland (RBS), says it is "considering processes around the benchmark service."

This group represents some of the biggest participants in the international foreign exchange market. London is the world's largest currency trading hub.

Related: U.K. joins currency manipulation probe

Authorities in Europe and Asia revealed earlier this month they are on the hunt for evidence that banks may have tried to rig exchange rates. The global sweep includes European Union regulators, as well as counterparts in the U.K., Switzerland and Hong Kong.

The push is part of a wider crackdown into financial industry misconduct.

A worldwide probe by authorities into the setting of the London Interbank Offered Rate, or Libor, has squeezed billions of dollars out of banks in fines and prompted regulatory changes. Traders have also faced criminal charges.

Banks are increasingly seeing earnings drained by mounting legal costs as regulators penalize bad behavior. On Tuesday, Germany's Deutsche Bank (DB) revealed a sharp third-quarter profit plunge as it put aside 1.2 billion euros ($1.7 billion) to cover legal expenses. UBS also faces a slimmer profit as Swiss authorities require the bank to hold more capital to meet future litigation costs.

Fines are also rising in the U.S., where so far this year banks have agreed to fork out more than $17 billion in settlements with regulators.

First Published: October 30, 2013: 9:46 AM ET

Anda sedang membaca artikel tentang

European banks under fire in global forex probe

Dengan url

https://sepakgajah.blogspot.com/2013/10/european-banks-under-fire-in-global.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

European banks under fire in global forex probe

namun jangan lupa untuk meletakkan link

European banks under fire in global forex probe

sebagai sumbernya