The regulatory censuring of a series of global banks for their part in the FX rate manipulation controversy came to an end in November last year with six banks paying a collective $4.3 billion in fines, however, the civil litigation which ensued has also run into the billions.
The Wall Street Journal today reported that the total amount paid by banks to settle a civil lawsuit tied to allegations that traders manipulated the currency market has now reached almost $2 billion following a recent round of settlement agreements.
HSBC Holdings plc (LON:HSBA), Barclays PLC (LON:BARC), BNP Paribas SA (EPA:BNP) and Goldman Sachs Group Inc (NYSE:GS) have recently signed agreements to settle the case, the report by the Wall Street Journal stated.
The Wall Street Journal’s sources explained that HSBC agreed to pay $285 million and Barclays $375 million. Goldman Sachs Group was previously in advanced settlement discussions for $129.5 million. It was unclear how much BNP has agreed to pay.
The four banks are among several institutions named as defendants in the suit filed in late 2013 by law firms Scott+Scott LLP and Hausfeld LLP on behalf of a group of claimants including several U.S. state pension funds, which alleged bank traders improperly shared confidential information about their clients’ orders through electronic chat rooms to unfairly manipulate the FX market.