May 20, 2015
5 Major Banks Plead Guilty To Market Rigging, Fined $5.7 Billion
On Wednesday, the Department of Justice announced that five major banks: Barclays, Royal Bank of Scotland, JPMorgan Chase, UBS and Citigroup, will be fined approximately $5.7 billion after pleading guilty to crimes involving the manipulation of global currencies and interest rates.
The DoJ noted that four of the banks – Citigroup, JPMorgan Chase, Barclays and the Royal Bank of Scotland – have been forced to plead guilty to antitrust violations in the foreign exchange market, they worked together to enhance their profits by allegedly manipulating the $5-trillion-a-day foreign exchange market to $10 billion.
At a press conference on Wednesday morning, US Attorney General Loretta Lynch said that starting as early as 2007, currency traders at several multi-national banks formed a group that they dubbed “the cartel.”
Lynch explained that almost every day for more than five years, traders in this “cartel” communicated through coded language in a private electronic chatroom to manipulate the market’s exchange rate between euros and dollars.
Rachel Blevins is a student at Texas Tech University who aspires to break the left/right paradigm in media and politics by pursuing truth and questioning authority as she establishes her journalism career. For story tips, contact firstname.lastname@example.org
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