Bloomberg is reporting today that prosecutors from the United States are pressing to bring charges against a bank for Forex rate rigging by the end of this year, and actions against individuals will probably follow in 2015, this is according to people familiar with the probe, no one cited by Bloomberg as the story is just developing.
The Justice Department may seek guilty pleas from several banks, including at least one in the United States., said one of the sources, asking not to be named because details of the investigation aren’t public. While federal prosecutors have wrested convictions from foreign banks this year for wrongdoing, they’ve yet to win a guilty plea from a United States lender in that effort, and authorities preparing for strong resistance if they attempt to bring about charges.
Justice Department officials have vowed to hold more institutions and individuals accountable for criminal conduct amid public frustration over the lack of prosecutions against top Wall Street executives for the worst financial crisis since the Great Depression. The currency rigging scandal could end up providing the authorities a scapegoat in which to place some sort of severe punishments on the banks.
Initiating FX rigging prosecutions this year would help the Justice Department keep pace with regulators worldwide.
FX rigging violations: FCA in discussions with banks on FX manipulation settlement
The U.K. Financial Conduct Authority, the U.S. Federal Reserve, and the Office of the Comptroller of the Currency are already in settlement talks with several banks with a goal of reaching some agreements next month.
To read the article on Bloomberg, click here.