Barclays is set to pay a substantial fine to resolve allegations that it abused foreign exchange markets through its electronic trading platform by next month, presenting an early test for the bank’s incoming chief Jes Staley.
The US Department of Financial Services is likely to impose a penalty of at least $100m for the alleged electronic trading abuses. This follows the $485m that the bank agreed to pay New York’s banking regulator in May over manipulation of forex spot trading, people familiar with the case said. The looming penalty comes as US agencies’ far-reaching forex probe also pursues fresh claims against Deutsche Bank.
Moody’s, the rating agency, calculated this week that banks’ litigation costs since the 2008 financial crisis have reached almost $219bn, with the bulk of the burden shouldered by US banks, led by Bank of America with provisions of about $70bn.