On Thursday, the 16th of May 2019, the European Union, a 28-nation pact of European countries excluding Britain, had fined five large lenders a combined $1.2 billion (1.05 billion euros) for manipulating the multi-trillion-dollar forex market.
In point of fact, lenders all over the world had been hit with billions of dollars in fines over the past few years for rigging of benchmarks, they used in daily financial transactions, however, this time it had been UK’s Barclays, United States’ Citi, MUFG and JPMorgan, and Scottish RBS.
Apart from that, the latest allegation from EU on FX rigging had added further strains on to the industry’s bitter reputation following the era of great financial depression. Followed by the decision, EU had issued a statement saying that individual traders at the involved lenders had created two rackets to manipulate spot FX market for 11 currencies including the British currency, Euro and American Dollar.
Besides, adding that the bloc would not tolerate such meretricious behavior, European Competition Commissioner, Margrethe Vestager said at a statement, “These cartel decisions send a clear message that the Commission will not tolerate collusive behavior in any sector of the financial markets”.
Concomitantly, Citigroup had been hit with the highest monetary penalty of around 311 million euros, while the Swiss UBS had not been fined, as it had warned EU Commission about the subject matter earlier, an EU Commission spokeswoman said.