Barclays share price: what’s the outlook after currency rigging fine?
The UK lender saw its stock dip slightly last week after being fined by Swiss regulators over its involvement in currency rigging.
Barclays share price fell more than 2% on Thursday last week, after the bank, along with five other lenders including Royal Bank of Scotland (RBS), were fined by Swiss regulators over their involvement in fixing foreign exchange trading.
The cartels by Barclays and other lenders rigged currency markets were dubbed ‘Three-Way Banana Split’ and ‘Essex Express’.
Barclays et al hit with major fines
The Swiss competition watchdog WEKO has issued fines against Barclays and the other lenders involved, with penalties totalling CHF 90 million (£71.3 million).
The fine came just weeks after the EU Commission imposed its own penalties on the five lenders that included Citi, JPMorgan and MUFG.
Swiss regulators penalties pale in comparison to those imposed by the EU Commission, which has issued fines totalling €1.07 billion (£936 million) on the banks. Barclays share of the fine totalled €210 million.
Banks used online chatrooms to rig FX markets
According to the EU Commission, traders at Barclays and other lenders exchanged sensitive information and coordinated trading activities via chatrooms.
‘Some of the traders created the chatrooms and then invited one another to join, based on their trading activities and personal affinities, creating closed circles of trust,’ the commission said.
‘The behaviour of these banks undermined the integrity of the sector at the expense of the European economy and consumers.’
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