In the aftermath of official fines imposed by major financial regulators, the stream of litigation against major banks seems unending. The latest batch of fines comes after a settlement agreement between the banks and a number of multi-national corporations, hedge funds and pension funds represented by international law firm Scott + Scott.
The top three British banks, Barclays, HSBC and Royal Bank of Scotland (RBS) have agreed to pay over $900 million, while French BNP Paribas and Goldman Sachs agreed to pay $249 million between them.
According to the settlement proposal sent to the federal court for approval, Barclays has agreed to pay $384 million, HSBC $285 million and RBS $255 million. The financial institutions face more litigation in the coming months and possibly years as Scott + Scott plans to bring its successful effort to European courts.
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Another litigation which could substantially disrupt the business of major financial institutions is the criminal action being prepared by the Serious Fraud Office in the U.K.
Representing the interests of Russian commodities mogul, who now owns Chelsea F.C., Roman Abramovich, the same law firm has filed a case against the very same trio of British lenders.
Back in August, a number of major banks were hit by a $2 billion fine from another litigation process led by Hausfeld. With Scott + Scott following suit, the bill for forex manipulation continues to grow briskly.
This year’s Finance Magnates’ London Summit will deliver to all industry insiders attending the event an exclusive look into the forex fixing scandal a year after the first reports about regulatory fines. With the financial consequences remaining uncertain, and with further litigation in Europe and possibly in Asia around the corner, the bill could continue growing exponentially.