Exchange Rate Manipulation: The United States Or Fines The World $4 Billion

Financial regulators did not conclude the investigation of exchange rate manipulation.

After last year's five major banks fined 3 billion 400 million dollars for the case, the US Department of justice has to punish a number of international banks suspected of manipulating. On average, each bank may have to pay 1 billion dollars in settlement money, which may total 4 billion dollars.

Insiders told Bloomberg news that the settlement proposed by the US Department of justice marks the beginning of the settlement phase of the investigation. The Ministry of justice has sought to make reconciliation payments for all involved banks at about $1 billion. A bank has cooperated with us at the beginning of the investigation, and it is expected that such fines will be much less than $1 billion.

UBS is the first bank to notify the US government that it may have improper operation in the foreign exchange market. It has been exempted from allegations against the anti trust law.

Peng Bo reported that the reconciliation talks started in recent weeks.

The government's allegations against Barclays, Citigroup, J.P. Morgan, Royal Bank of Scotland and UBS's illegal manipulation of the money market are expected to end, but the United States has indicated that it is ready to sue relevant individuals.

According to reports quoted by people familiar with the matter, the current negotiations involve

The total amount of gold is about $4 billion, but this figure may change a lot, because several banks have been negotiating harder than ever to fight for a lighter result, and fines may be less than $4 billion.

Last November 12th, financial regulators in the United Kingdom, the United States and Switzerland ruled on the exchange rate manipulation, fined a total of 3 billion 400 million dollars for Citigroup, HSBC, Morgan chase and Royal Bank of Scotland.

Among them, the United Kingdom

The regulator has cooperated with five banks for a fine of $1 billion 770 million. The agency claims to be its highest ticket so far.

The commodity futures trading commission of the United States imposed a fine of 1 billion 480 million dollars on the five banks. The Swiss financial market regulator only fined 134 million Swiss francs (about US $138 million) for UBS.

According to the Bloomberg report, six banks around the world have fined about $4 billion 300 million in the global currency manipulation survey.

Some of these banks have already made provision for such surveys.

In the fourth quarter of last year, Barclay set aside 750 million pounds (US $1 billion 100 million) for the total provision of 1 billion 250 million pounds; the Royal Bank of Scotland's related expenditure amounted to US $1 billion 200 million; Morgan chase and Citigroup increased the provision of US $1 billion 100 million and US $2 billion 900 million respectively in the quarter, and the Swiss Swiss Franc (about 175 million dollars) was set aside in the quarter after the Swiss Swiss Franc was allocated in the previous quarter.

Reported that the insider mentioned that from the example of last year's Bank of France (farba) in Paris, the final fines of the settlement negotiations may vary greatly.

Last year, the negotiating settlement of farba was in the range of 35-150 billion dollars, and eventually the bank fined $8 billion 970 million.