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Bank Of America Corp (NYSE:BAC) And Others Get Enforcement Letters From Regulators In Foreign Exchange Markets Manipulation Probe

Boston, MA 08/14/2014 (wallstreetpr) – Various banks including JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS) and Bank of America Corp (NYSE:BAC) have been issued notification from the regulators in context with the alleged currency rigging. The regulators are in process of preparing enforcement actions on activities associated with currency rigging.  It has been alleged that a few financial institutions used rigging (a process of artificially inflating prices at consumers’ expense), thus attracting anti-trust factor.

Investigations into Foreign Exchange Markets Manipulation

Negotiations and discussions are progressing between all the banks, Office of the Comptroller of the Currency and U.S. Federal Reserve in order to keenly finish off the investigations into the case involving foreign exchange markets manipulation.

A few of these banks like Bank Of America Corp (NYSE:BAC), have been given 15-day letter underscoring the warnings as well as findings of the agencies, depicting that enforcement actions would most probably take place. In the letter, the details of findings have been highlighted and recipients have been given 15 days for filing their written defense.

Some of the investigations are however, taking much longer because the firms like Bank of America have not responded or progressed as of now, in the 15-day letter; as reported by Bloomberg.

Kinds of Likely Enforcements Actions

The enforcement actions which agencies can take might include cease-and-desist orders as well as fines for banning bankers completely from this industry. In fact, regulators in the U.S. are also co-ordinating with the Financial Conduct Authority (FCA) of the U.K. in a move to settle some of the investigations by November of this year.

FCA has also scheduled a few meetings for September 2014 in order to kick off negotiations with a few banks on terms of penalties in form of settlements. Negotiations with banks like JP Morgan, Barclays PLC (ADR)(NYSE:BCS), Citigroup Inc (NYSE:C), HSBC Holdings plc (ADR)(NYSE:HSBC), Royal Bank of Scotland Group plc (ADR)(NYSE:RBS) and UBS AG (NYSE:UBS) for settlement shall be scheduled in September with FCA.

So far, the firms have shown co-operation with the U.S. banking regulators as well as FCA for handling over their own probe as well as conducting individual investigations.

Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email ([email protected]) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).



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