British and American regulators intend to fine the world's five largest financial institutions. The list includes JPMorgan Chase&Co., Citigroup Inc., Barclays Plc., Royal Bank of Scotland (RBS), UBS AG. The penalty amount is over 5 billion dollars. The above-mentioned companies are accused of rigging the foreign exchange market. Four of these five banks – JPMorgan, Citi, Barclays and RBS – are likely to plead guilty to the charges. Barclays' payments may exceed 2 billion dollars, as the bank is supposed to settle claims from a greater number of US and UK regulators.
Meanwhile, UBS AG managed to avoid having to admit guilt. The reason is that the US Ministry of Justice offered partial immunity from prosecution to the company, as it was the UBS that reported violations to the authorities.
Given the violations concerning LIBOR, UBS will have to pay 203 million dollars to the US Ministry of Justice and 342 million dollars to the Federal Reserve. It came as a bad surprise for the bank that the payments would have a negative effect on its financial performance during the current quarter. The results would be fully covered by reserve funds.
