A class action brought against 16 banks and their affiliates for alleged manipulation of FX markets will be allowed to go ahead after a New York judge largely ruled in the plaintiffs’ favour by throwing out a motion to dismiss brought by the defendants. The banks did, however, have the appeal to have the motion […]
Tag: benchmark manipulation
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”.
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.
Goldman Sachs has paid a $120 million fine after settling with the US Commodity Futures Trading Commission (CFTC) over accusations its traders attempted to manipulate the ISDAfix interest rate benchmark setting. Goldman neither admitted nor denied the charges in settling.
The CFTC issued an Order finding that, beginning in January 2007 and continuing through March 2012 Goldman attempted, by and through certain of its traders in New York, on many occasions to manipulate and made false reports concerning the US Dollar ISDAfix. It adds that Goldman’s “unlawful conduct” involved multiple traders, including the head of the bank’s interest rate products trading group in the US.