14th August 2015
Nine banks said to be involved in the rigging of foreign exchange rates have agreed to pay $2 billion (£1.3 billion) to US investors.
Lawyers working on behalf of institutional investors, such as hedge funds and pension funds, said they have agreed a settlement.
The banks include HSBC, Barclays, UBS, RBS, Bank of America, JP Morgan, Citibank and Goldman Sachs.
The world’s leading banks have paid billions in fines after traders fixed currency rates in the £5.5 trillion a day trading markets, creaming off hefty bonuses for themselves along the way.
In May, US and UK regulators issued $6 billion in fines for six banks for rigging of both foreign exchange markets and Libor interest rates.
Lawyer Michael Hausfeld said seven other banks are being pursued and that the legal firm was considering taking action in the UK and Asia.
‘While the recoveries here are tremendous, they are just the beginning,’ he said. ‘Investors around the world should take note of the significant recoveries secured in the United States and recognise that these settlements cover a fraction of the world’s largest financial market.’
There is no detail on how much each bank will pay to the institutional investors as the agreement is preliminary and will need to be agreed by a district judge.