JP Morgan & Citibank Still Being Investigated by Korean Regulators

A report on Monday from The Korea Times indicates that South Korean regulators are still investigating JP Morgan Chase and Citibank’s involvement in a pricing manipulation scandal that took place at the start of this decade.

The Fair Trade Commission (FTC) - Korea’s anti-trust regulator - has already handed out a number of fines to firms involved in the scandal, though it must be said they have been minuscule when compared to other similar fines given by US regulators in response to the 2013 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 scandal.

Most notably, Deutsche Bank AG and BNP Paribas were fined 71 million won ($63,000) and 105 million won ($93,000) respectively for their role in the debacle. When issuing the fine last year, the FTC said that the two companies had been manipulating forward currency contract prices from 2011 to 2014.

Working together, the two companies manipulated bid prices, on 45 occasions, for contracts companies were looking to buy for hedging purposes. By doing this, the two banks could take turns in winning the contracts - and give their clients a bad deal.

JP Morgan & Citibank - Still under Scrutiny

The report released by The Korea Times on Monday indicates that JP Morgan Chase and Citibank are under investigation for allowing their employees to engage in similar behavior.

"Those two are included,” an FTC official is quoted as saying, “in the ongoing assessment of a long line of allegations that have yet to be resolved."

Separate from the FTC, the Financial Supervisory Service (FSS), South Korea’s financial regulator, appears also to be conducting its own investigation into the rigging. According to The Korea Times, that investigation is ongoing.

How it will turn out is also less clear, but it is unlikely that either JP Morgan or Citibank will be crippled by a massive fine. Just last month the FSS handed out its biggest ever fine to Goldman Sachs for violating short selling Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.

That fine totaled 2 billion won ($1.78 million) - certainly not nothing but small change when compared to other regulators' efforts.