This post references an article originally written by Kaye Wiggins for Bloomberg, published on July 29, 2019.
In May it was reported that five banks were being fined $1.2 Billion by the European Commission on accounts of collusion on foreign exchange trading strategies. It is now being reported that a few of those same banks are being sued in the U.K. for more than $1 billion in damages. JPMorgan Chase & Co., UBS Group AG, Barclays Plc, Citigroup Inc. and Royal Bank of Scotland Group Plc are being sued for their participation in market manipulation via online chatrooms. The lawsuit is based on the accusation that market manipulation by the banks caused pension funds, asset managers, hedge funds, and corporations to lose out between 2007 and 2013.The suit seeks compensation for the losses.
The case is expected to take three to five years and was filed by Scott+Scott Europe whose U.S. branch, Scott+Scott Attorneys at Law LLP, had previously led a class action suit resulting in $2.3 billion in settlements. It is notable that Blades International, Inc. helped a client earn a modest settlement which was a small portion of that $2.3 billion fund in the U.S. This highlights the need for FX Rate Integrity®, which helps corporate clients receive appropriate reimbursement in the event they were receiving Excessive Markups for their FX transactions.
Read the fully story on Bloomberg.
-Paola Gasca, Analyst