Five Major Banks Approach Guilty Plea Settlement with US Regulator

On the heels of an earlier development today that Citigroup (NYSE:C) was nearing a guilty plea to FX manipulation charges, the number has swelled to upwards of five major banks, according to a Reuters report.

The US Department of Justice (DOJ) investigation has included the five major banks, Citigroup, JPMorgan, Royal Bank of Scotland (RBS), UBS AG, and Barclays Plc, which collectively alleged allegations of FX rate manipulation. The latest development indecently targets the parent banking groups, rather than respective subsidiaries, the first such instance in decades.

The potential US DOJ 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 parent groups represents a departure from the usual scenario, which typically targets smaller foreign subsidiaries to allay the layoffs of innocent employees. Perhaps more importantly, the repercussions of guilty pleas also could result in the renegotiation of respective regulatory exemptions in order to prevent any stymied business.

A similar situation transpired last month, when Deutsche Bank AG and Barclays Plc were facing the tangible prospect of holdups for their FX settlements, given an ongoing evaluation by the New York State (NYS) Department of Financial Services over currency manipulation.

The guilty pleas with the US DOJ made by each bank will in all probability result in antitrust charges via collusion by traders in an attempt to rig foreign currency rates. A guilty would also bring a hefty fine, with banks expected to Fork Fork A fork can occur when a blockchain diverges into two potential paths forward, there is a change in protocol, or a scenario occurs in which two or more blocks have the same block height.Because blockchain networks are decentralized, the participants on the network must come to an agreement when it comes to things like software upgrades to a network. This is called consensus.When consensus cannot be achieved on a software upgrade, a fork occurs, effectively representing a divergence in software th A fork can occur when a blockchain diverges into two potential paths forward, there is a change in protocol, or a scenario occurs in which two or more blocks have the same block height.Because blockchain networks are decentralized, the participants on the network must come to an agreement when it comes to things like software upgrades to a network. This is called consensus.When consensus cannot be achieved on a software upgrade, a fork occurs, effectively representing a divergence in software th Read this Term over penalties of upwards of $1 billion or more, with the aggregate total of the five banks possibly overtaking the $4.3 billion in fines paid by a six banks to global regulators last November.