This post references an article originally written by Byron Kaye for Forex StockNews, published on May 27, 2019.
An Australian law firm has filed a class action lawsuit against five banks: UBS AG, Barclays Bank Plc, Citigroup Inc, Royal Bank of Scotland, and JP Morgan AG. The five international banks are accused of “colluding to increase the price clients paid for certain investment products in order to fix exchange rates at more costly levels”, reports Forex Stock News. The banks would supposedly exchanged confidential information via internet chatrooms; this act of collusion which apparently took place between 2008-2013.
It is no coincidence that the banks involved in the Australian lawsuit are some of the same banks involved in the recent currency market scandals across Europe and the United States. As the investigations and lawsuits are ongoing, it is important to remember the importance of client-bank trust—especially in foreign markets. The banks acted to fix exchange rates at a higher cost, an act which highlights the importance of FX Rate Integrity® in foreign exchange transactions.
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-Paola Gasca, Analyst