£1.3bn settlement for banks

Bank

Justice, it seems, has finally been served regarding the various accusations of foreign ex-change fraud levied against UK banking institutions. US investors have scored a substantial victory in this particular struggle, securing nearly $2 billion dollars in settlements following the outcome of a recent legal battle. The banks included in the court decision include HSBC, Barclays, BNP Paribas, Bank of America, JP Morgan, Citibank, Goldman Sachs, RBS and UBS.

Although this depth of financial restitution is quite significant, the legal team representing the victims of FX fraud are declaring this the beginning of a longer battle. According to Michael Hausfeld, an attorney involved in the case, “"While the recoveries here are tremendous, they are just the beginning...Investors around the world should take note of the significant recov-eries secured in the United States and recognize that these settlements cover a fraction of the world's largest financial market."

Unfortunately, the world of foreign exchange market trading has gained infamy in recent years for its ethically dubious dealings. Given the fact that over 5.5 trillion pounds sterling trades hands in this marketplace on a daily basis, it should come as no surprise that many less-than-savoury characters are attempting to gain a foothold here in order to reap lucrative rewards, regardless of the legality of their actions.

As of right now, the individual fines levied against specific banks involved in the court deci-sion have yet to be determined. Suffice to say, it is likely that these penalties will be severe enough to make an example for others who may be so inclined to cheat the system again. More information about the specific outcomes of this trial will likely be made available in up-coming weeks as the district judge finalises bank-specific restitution policies.

As of right now, the individual fines levied against specific banks involved in the court deci-sion have yet to be determined. Suffice to say, it is likely that these penalties will be severe enough to make an example for others who may be so inclined to cheat the system again. More information about the specific outcomes of this trial will likely be made available in up-coming weeks as the district judge finalises bank-specific restitution policies.

Until then, the FX market continues its frenetic, near round-the-clock activity. For those who may be interested in investing in this marketplace, it is important to remember that transpar-ency and regulation has never been, nor likely will they become, as prevalent as can be found in more popular stock exchanges. That being said, the promise of immense wealth is likely to continue to draw new investors into this competitive environment for the foreseeable future.

Read 721 times
Isuru Karavita

He graduated from the university of Hertfordshire with a BEng(Hons) in Digital Communication and Electronic Engineering. 

Latest Posts