Barclays faces further scrutiny as US widens foreign exchange market investigationComments Off on Barclays faces further scrutiny as US widens foreign exchange market investigation
The DoJ is examining whether Barclays and Swiss bank UBS sold so-called structured products without disclosing the profit they were making from currency trades used to generate the products’ returns, the Financial Times reported citing sources.
Other banks are also being investigated over allegations of inadequate profit disclosure to clients, the FT added.
The new line of inquiry significantly steps up an existing probe into alleged foreign exchange market rigging that has gripped the international banking world.
UK and US regulators last year fined five banks around £2 billion over failings in currency trading.
UBS took the lion’s share of the joint penalty, paying $371 million, while Royal Bank of Scotland, HSBC, UBS, JP Morgan Chase and Citibank were also ordered to cough up.
Barclays was not part of that round of fines, however, and investigation into the bank continued.
The DoJ was not involved those settlements and is still looking at all the banks, as well as individuals, the FT said.