Banks agree £1.3bn forex settlement

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Nine banks have agreed to pay $2bn (£1.3bn) in settlements to US investors over claims the firms rigged foreign exchange rates.

The BBC reports the banks include HSBC, Barclays, BNP Paribas, Bank of America, JP Morgan, Citibank, Goldman Sacks, Royal Bank of Scotland and UBS.

The claims alleging forex manipulation were brought by investors, hedge funds and pension funds.

Lawyer Michael Hausfield told the BBC: “While the recoveries here are tremendous, they are just the beginning.

“Investors around the world should take note of the significant recoveries secured in the United States and recognize that these settlements cover a fraction of the world’s largest financial market.”

Several other banks are also being pursued through the courts, with further legal challenges being considered in London and Asia.

The agreements still need to be agreed by the district judge.

In May international regulators fined five banks £3.7bn over forex rigging, on top of £2bn in forex fines imposed in November.