Five banks have filed to settle a class action lawsuit
brought against them over FX benchmark manipulation claims.

According to papers filed in New York, the settlement agreements resulted from “arm’s-length
negotiations between highly experienced counsel and fall within the range of possible
approval”.

This means the
agreements are preliminarily approved, subject to further consideration at a
Fairness Hearing.

Morgan
Stanley has agreed to pay $50 million; Societe Generale $18 million; Standard
Chartered Bank $17.2 million; Royal Bank of Canada $15.5 million; and Bank of
Tokyo-Mitsubishi UFJ $10.2 million. All five banks continue to deny wrongdoing.

The class
action, which resulted from allegations of collusion and misconduct around
benchmark fixes – mainly the WM Reuters London 4pm Fix, was led by a group of
US pension funds. It has now achieved settlements with 14 of the 16 accused
institutions, for a total of slightly over $2.1 billion – only Credit Suisse
and Deutsche Bank have thus far declined to settle.

Colin_lambert@profit-loss.com

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@Profit_and_Loss

Colin Lambert

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