OCC Fines Three Banks $950 Million For FX Trading Manipulation
The Office of the Comptroller of the Currency said Wednesday it has fined three major U.S. banks $950 million for "unsafe or unsound" practices related to their foreign exchange trading business. The fines are against Bank of America Corp. , J.P. Morgan Chase & Co. and Citigroup Inc. and follows a multiagency investigation into the banks activities in the global FX market. Bank of America will pay $250 million, J.P. Morgan will pay $350 million and Citigroup will pay $350 million. The FX market has a daily average volume of more than $5 trillion globally. Between 2008 and 2013, the OCC said it found some of the banks traders holding discussions in online chat rooms talking about coordinating FX trading strategies to manipulate exchange rates to benefit traders or the bank. The fines follow related settlements with U.S., British and Swiss regulators.
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