Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  Citigroup Inc.    C


News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Big Banks Fined by EU for Foreign-Exchange Misconduct -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
05/16/2019 | 10:59am EDT

By Patricia Kowsmann in Frankfurt and Margot Patrick in London

European Union authorities on Thursday fined five global banks a total of EUR1.07 billion ($1.2 billion) for manipulating the foreign-currency market by exchanging sensitive information and trading plans through online chat rooms to gain financially.

Citigroup Inc., JPMorgan Chase & Co., Barclays PLC, Royal Bank of Scotland Group PLC and Japan's MUFG Bank Ltd. are paying between EUR69.7 million ($78.1 million) and EUR310.7 million under settlements with the European Commission. UBS Group AG, which in 2013 revealed the existence of two cartels formed by the banks, has received full immunity and avoided EUR285 million in fines, the commission said.

Citigroup, which is paying the top fine of EUR310.7 million, and Barclays declined to comment. An RBS spokesman said the fine is a reminder of how badly the bank "lost its way" in the past.

A JPMorgan spokesman said one former employee was involved in the case, adding "we have since made significant control improvements." A spokeswoman for MUFG said it had taken "a number of measures to prevent this occurring again."

The manipulation involved 11 currencies, including the euro, U.S. dollar and British pound, and took place between 2007 and 2013. It involved foreign exchange spot order transactions, which are executed on the same day at the prevailing exchange rate. The commission said individual traders at the five banks exchanged information in a way that allowed them to coordinate whether and when to sell and buy the currencies for their advantage.

Most of the traders knew each other outside work, the commission said, including from commuting by train into London. The chat rooms, with colorful names such as "Three Way Banana Split" and "Semi Grumpy Old Men, " were kept open on the traders' screens all day, and they would post regular updates on their trading activities, the commission said.

The European Commission is one of the last global authorities to impose a large fine over behavior in foreign exchange trading markets that first came to light in 2013 and takes the total tab paid by banks over $11 billion. The commission opened an investigation that year but its findings come years after banks settled similar allegations in the U.S. and U.K. The commission said it hasn't completed its work, though.

"The commission will continue pursuing other ongoing procedures concerning past conduct in the Forex spot trading market," it said. HSBC Holdings PLC earlier this year said it also had been asked by the European Commission for information around potential coordination in foreign-exchange options trading.

The European Commission has a separate open probe into possible collusion among global banks to manipulate markets of U.S. dollar-denominated supra-sovereign, sovereign and so-called SSA bonds, which are issued by entities like the World Bank and European government agencies.

Online chat rooms, in which traders often showed little interest in covering up their activities, turned into a treasure trove of evidence for investigators.

In 2015, when Barclays, Citigroup, JPMorgan and Royal Bank of Scotland settled a similar forex manipulation case in the U.S. paying over $5 billion in fines, documents showed much of the information exchanged among traders happened in an electronic chat room known by participants as "The Cartel" or "The Mafia."

Connecticut-based law firm Scott+Scott LLP, which helped secure $2.3 billion in settlements for clients in the U.S. case, said it would begin recovery action in Europe on behalf of non-U.S. pension funds, asset managers and companies.

Write to Patricia Kowsmann at patricia.kowsmann@wsj.com and Margot Patrick at margot.patrick@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
BARCLAYS PLC 1.17% 150.74 Delayed Quote.0.15%
CITIGROUP INC. -1.39% 66.54 Delayed Quote.29.62%
MITSUBISHI UFJ FINANCIAL GROUP INC -0.34% 503.7 End-of-day quote.-4.58%
ROYAL BANK OF SCOTLAND GROUP 0.85% 214.2 Delayed Quote.-1.15%
UBS GROUP -0.13% 11.505 Delayed Quote.-5.84%
This article is part of a news chaine.
Article 2 / 2
<< Preceding Next >>
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on CITIGROUP INC.
07:23pBanks to include CO2 emission measures in shipping loan decisions
10:12aCITIGROUP : Citi combines rates and currencies businesses
06/14CITIGROUP : Banks Take First Steps on Climate Risk Evaluations
06/14HSBC Boosts Role as Saudi Banker -- WSJ
06/13CITIGROUP : Authorization to Deregister Citigroup's Common Stock in Mexico and C..
06/12CITIGROUP : Celebrating 100 Years in Canada
06/11Cloud computing may put Big Tech ahead in future of video games - Citi
06/11CITIGROUP : Citi Second Quarter 2019 Earnings Review
06/10CITIGROUP : Citi launches co-branded credit cards with South East Asia's Grab in..
06/10Bank Stocks Climb on Mexico Tariff Delay
More news
Financials ($)
Sales 2019 74 464 M
EBIT 2019 32 156 M
Net income 2019 17 051 M
Debt 2019 -
Yield 2019 2,99%
P/E ratio 2019 8,68
P/E ratio 2020 7,63
Capi. / Sales 2019 2,04x
Capi. / Sales 2020 1,98x
Capitalization 152 B
Duration : Period :
Citigroup Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CITIGROUP INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 28
Average target price 79,1 $
Spread / Average Target 20%
EPS Revisions
Michael Louis Corbat Chief Executive Officer & Director
James Anthony Forese President & CEO-Institutional Clients Group
John C. Dugan Chairman
John C. Gerspach Chief Financial Officer
Anthony M. Santomero Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
CITIGROUP INC.29.62%144 784
BANK OF AMERICA13.80%253 679
WELLS FARGO-1.06%200 088