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Screenshot of a breaking news alert e-mail from Q2 2017
As the Forex rigging settlements around major publicly traded banks have started to clear up, many prognosticators have evaluated the potential impact of the stock prices of these banks. Trefis, an online financial community structured around trends, forecasts and insights put together a table showing the different bank fines from the various government regulators and financial watchdogs.
Barclays and Citigroup sit at the top of the list with roughly $2.3 billion in fines each. UBS got away without a fine from the DoJ due to its role in bringing the forex manipulation issue to regulators’ attention. However, as reported here on LeapRate the DoJ tore up its 2012 Non-Prosecution Agreement with UBS over the bank’s LIBOR misgivings – forcing the bank to plead guilty in the older matter and to pay a separate $203 million fine.
Summary of last weeks Forex settlements:
– The settlement, which was led by the U.S. Department of Justice (DoJ), saw the banks cough up a fresh $6 billion.
– The latest settlement deal was reached six months after the banks closed joint settlement talks with U.S., British and Swiss regulators for a total payout of $3.4 billion.
– All the banks have already set aside sufficient cash to cover the costs of their latest deal, so their Q2 results are not expected to be negatively impacted.
– Bank of America and HSBC are yet to settle their expected fines with the DoJ.
With settlement costs in the rear-view mirror for now for these major banks, could this reflect well on future earnings and the underlying share prices? Stay tuned to LeapRate for the latest in the FX manipulation fines as they come to their final conclusions.
To view the Forbes article from Trefis, click here.