Barclays share price edges lower amid forex settlement talk

on Apr 22, 2015
Updated: Oct 21, 2019

Barclays (LON:BARC) could be nearing a settlement with US and UK regulators over its role in alleged foreign exchange manipulation, the Financial Times has reported. According to unnamed sources, cited by the newspaper, the US Department of Justice (DoJ) is close to finalising its forex-rigging investigation into five banks — Barclays, RBS (LON:RBS), JP Morgan, Citigroup and UBS – which is expected to lead to fines of as much as $1 billion for the lenders.

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Other US authorities probing the currency market, as well as the British regulators, could also soon reach an agreement with Barclays after the FTSE 100-listed bank was unable last year to join a combined $4.3 billion settlement, in which six lenders — HSBC (LON:HSBA), JPMorgan, Citigroup, RBS, UBS and Bank of America — admitted their involvement in the scandal.
While insiders have pointed to a mid-May resolution for Barclays, the group faces an additional complication because it is also a subject to an investigation from the New York Department of Financial Services (DFS) into computer programmes used by the bank to trade in the foreign exchange market. The watchdog said yesterday that it would not agree a deal, which did not allow it to continue to pursue its inquiries in Barclays’ algorithmic trading operations, meaning that any DoJ settlement, as well as other agreement, would not close the matter for the British lender.
Benjamin Lawsky, superintendent of the New York DFS, said yesterday: “There are two options: you can do a settlement in May with a carveout [for the algorithmic trading investigation], or you can do a settlement later without a carveout.”
Barclays’ shares have not been in favour today. By 12:33 BST, the lender’s stock has fallen 0.67 percent to 253.40p. In the year to date, Barclays’s share price has advanced almost four percent.
As of 13:33 BST, Wednesday, 22 April, Barclays share price is 253.25p.


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