JPMorgan settles currency manipulation lawsuit in U.S.
(Reuters) – JPMorgan Chase & Co has become the first bank to settle a U.S. antitrust lawsuit in which investors accused 12 major banks of rigging prices in the $5 trillion-a-day foreign exchange market.
The largest U.S. bank will pay about $100 million, a person familiar with the matter said. Lawyers for the bank and the investors said a settlement had been reached in a letter filed on Monday with the U.S. District Court in Manhattan.
JPMorgan settled after mediation with Kenneth Feinberg, who also oversees a General Motors Co program to compensate drivers whose vehicles had faulty ignition switches.
Monday’s settlement requires court approval, and settlement papers are expected to be filed with the court this month.
The 2013 lawsuit is separate from criminal and civil probes worldwide into whether banks rigged currency rates to boost profit at the expense of customers and investors.
JPMorgan agreed in November to pay roughly $1.01 billion to resolve such probes by U.S. and European regulators. Five other banks settled for an additional $3.3 billion.
In their complaint, investors including the city of Philadelphia, hedge funds and public pension funds accused the 12 banks of having conspired since January 2003 in chat rooms, instant messages and emails to manipulate the WM/Reuters Closing Spot Rates.
They said traders would use such names as The Cartel, The Bandits’ Club and The Mafia to swap confidential orders, and set prices through manipulative tactics such as “front running,” “banging the close” and “painting the screen.”
Other defendants include Bank of America Corp, Barclays Plc, BNP Paribas SA, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc, HSBC Holdings Plc, Morgan Stanley, Royal Bank of Scotland Group Plc and UBS AG.
According to the lawsuit, the 12 banks held an 84 percent global market share in currency trading, and were counterparties in 98 percent of U.S. spot volume.
“The settlement is a responsible step by Chase in addressing its involvement,” Michael Hausfeld, a lawyer for the investors, said in a phone interview. “It is a beginning with respect to the accountability of other banks engaged in the same trading.”
JPMorgan declined to comment. The other 11 banks declined to comment or did not respond to requests for comment. Bank of America, Citigroup, HSBC, RBS and UBS also settled with regulators in November.
The case is In re: Foreign Exchange Benchmark Rates Antitrust Litigation, U.S. District Court, Southern District of New York, No. 13-07789.
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So they paid a $100 million fine. I guess in a $5 trillion a day business, they can afford it!
You Betcha!
Globalist Club-members do not go to jail, the cost of doing (club) business is part of the “Protection Racket” from government puppets.
I want you to take a look a cryptogram from the Rothschild owned magazine:
The Economist
https://ronmamita.wordpress.com/2015/01/09/the-economist-cryptically-reveals-the-world-in-2015/
Andy Hoffman: Central Banks to Lose All Credibility
Jan 22, 2015
Andy Hoffman, precious metals market analyst and media director at Miles Franklin (milesfranklin.com) joins us on Reluctant Preppers, in the wake of the Swiss Bank un-pegging its currency from the Euro, to warn us that 2015 will be a watershed year that will impact each of our financial lives in a big way!