Nice Work Boys

 

Early in the Obama Administration, the Economic Plan was sometimes referred to as "Full Employment for Lawyers"....lets go to the scoreboard-

From Bloomberg News:

Citigroup Inc. (C) andJPMorgan Chase & Co. (JPM)were the hardest hit in the first settlements since authorities began a global probe into the rigging of key foreign-exchange benchmarks last year.

Citigroup will pay $1.02 billion to three regulators in the U.S. and U.K., and JPMorgan $6 million less, according to statements from the firms today. They are among six firms that will pay $4.3 billion to four regulators ranging from the U.S. to Switzerland’s Financial Market Supervisory Authority.

Banks and individuals could face further penalties and litigation following the 13-month probe into allegations dealers at the biggest banks colluded with counterparts at other firms to rig benchmarks used by fund managers to determine what they pay for foreign currency. The Justice Department, which is working with the Federal Reserve, and Britain’s Serious Fraud Office are still leading criminal probes into the $5.3 trillion-a-day currency market.

And...

JPMorgan, based in New York, had a $1 billion legal expense in the third quarter which was tied “in large part” to the currency probes, Chief Financial Officer Marianne Lake said on Oct. 14. Zurich-based UBS this week set aside $1.94 billion for litigation provisions and said it’s in talks with the antitrust and criminal divisions of the U.S. Justice Department about currency rigging.

Deutsche Bank disclosed $1.1 billion of litigation costs for the third quarter, without breaking out individual matters. The Frankfurt-based bank is one of the four biggest currency dealers in the world, along with Citigroup, Barclays and UBS, according to Euromoney Institutional Investor.

In addition to pursuing banks, U.S. prosecutors will probably file charges against individuals in 2015, people familiar with the probe said last month. The Justice Department may seek guilty pleas, including from at least one U.S. firm, one of the people said.

The costs will climb beyond just legal reserves, Citigroup analysts led by Kinner Lakhani said last month. The total bill for fines and other settlements could be as much as $41 billion.

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