The five largest banks in the world on Wednesday fined a total of $ 5.8 billion (€ 5.2 billion). Four of them to the authorities in the US made a confession about manipulating exchange rates. The fifth, the Swiss UBS, pleaded guilty for manipulating the Libor, but not prosecuted for currency manipulation. The bank brought the abuses to light and cooperated in the investigation.
Loretta Lynch
The US Department of Justice released Wednesday outside Citigroup, JPMorgan Chase, Barclays and Royal Bank of Scotland (RBS) debt have known the manipulation of exchange rates of the dollar and the euro. The settlements with the Ministry go up to $ 2.7 billion. In addition puts the Federal Reserve, the US central bank system, another € 2.9 billion in fines. Bank of America is at a monetary penalty of $ 205 mln.
Loretta Lynch, the US attorney general, called the fines for publication “reflects the damage that has been done.” Currency traders have claimed Lynch almost every day the exchange deliberately manipulated and thus the world caused damage.
JPMorgan Chase and Citigroup by the US authorities excited to respectively $ 550 million and $ 925 million. Barclays fined of $ 650 million, JPMorgan Chase $ 550 mln and $ 395 mln RBS.
, UBS
UBS will pay a total of $ 545 million. A penalty which falls into two parts. Thus, UBS will pay $ 203 million because the bank has not complied with previous agreements with prosecutors in the US. These agreements relate to the role of the bank in the manipulation of the leading interest rate Libor.
The other penalty for the Swiss bank amounted to $ 342 million for fraud with exchange rates. The Federal Reserve, the US central banking system, the fine imposed earlier on Wednesday at UBS, after an admission of guilt. In total the bank has in recent years already paid $ 2.8 billion in fines for Libor issue and currency manipulation.
The Dutch bank Rabobank has also paid fines worldwide. A sloppy € 780 million, of which € 80 million to the Public Prosecutor in the Netherlands. Rabobank is for manipulating the Libor and Euribor interest rates no longer prosecuted, the court decided in The Hague on Tuesday.
More than $ 160 billion in fines
Globally, banks have expensive years behind. Since the outbreak of the credit crisis in 2007, they have more than $ 160 billion (including the fines Wednesday) affected by settlements and fines received. According to research by the British newspaper The Financial Times.
The largest fine in the past eight years, handed to Bank of America, which paid nearly $ 17 billion because of misleading investors in mortgage bonds. That was not the only one for Bank of America. In total, the US bank more than $ 57 billion should overbook. That was among other disadvantage of homeowners who forced their house are turned off (almost $ 15 bln) and a dispute over the sale of bad loans at mortgage lender Fannie Mae ($ 11.6 billion).
Other banks also have to dig deep into their pockets. After Bank of America, JPMorgan Chase hit hard and is excited for a total of $ 31 billion. Citigroup then follows with nearly $ 13 billion. The final settlement of $ 0.5 billion, the loss goes to UBS up to a total of $ 4 billion.
Mortgage bonds
The mortgage bonds, often referred to in subprime mortgage bonds, are responsible for the largest expense for banks. They led a total of almost $ 61 billion in settlements. In second place, with more than $ 35 billion, are the settlements concluded because of discrimination against homeowners who forced their house were turned off.
That the role of banks is closely monitored, will also result in fines for violating sanctions, money laundering and tax evasion. Lately especially fines handed out for manipulations of interest and exchange rates. It is also Rabobank on his fingers tapped for its role in the Libor scandal. That cost the bank € 774 million, with ₤ 105 million (€ 123 million) will be paid to British regulators and $ 800 million (€ 581 million) to US regulators.
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