Germany’s financial watchdog yesterday revealed it held concrete evidence that banks had tried to manipulate the €5.3tn a day foreign exchange markets even as Brussels charged three more over a rate-rigging cartel, in a sign that the industry has not yet put scandal behind it.
The news, which came less than 24 hours after US authorities fined Credit Suisse $2.6bn for helping clients with tax evasion, reinforced fears in the executive ranks of US and European banks that they still faced serious legal challenges.
Senior bankers told the Financial Times they feared the forex probes would prompt another round of multibillion-dollar penalties echoing the punishment meted out in the Libor-rigging scandal, which has so far cost the industry $5.8bn in fines.