Barclays Joins UBS And Deutsche Bank In Confirming DOJ Probe
With the LIBOR scandal barely far enough in the past to be a bad memory, Barclays PLC, London’s international banking house has confirmed that regulators are asking for information regarding the possible manipulation of foreign exchange rates. The U.K. based bank joins UBS of Switzerland and Deutsche Bank of Germany in confirming that the U.S. Department of Justice (DOJ) has initiated a probe into these matters.
Barclays Is Cooperating
Barclays made the announcement of the probe during its third quarter earnings call, and said the bank is cooperating with authorities to get to the bottom of the matter. The exchange rates help set the rates for trillions of dollars of investments, and if they are manipulated entire markets may be compromised.
The bank said that the investigators from the DOJ have noted that the investigations are focusing on foreign currency traders, and that this investigation centers around allegations of “possible attempts to manipulate certain benchmark currency exchange rates, or engage in other activities that would benefit their trading positions.
UBS & Deutsche Bank
The announcement from Barclays comes only two days after a similar announcement by Switzerland based UBS. Deutsche Bank of Germany also confirmed that the DOJ had launched a probe into its actions as well.
Aside from the DOJ, there are several other investigations ongoing into the actions of the banks and they include internal investigations by the banks themselves. Great Britain has launched its own investigation through their Financial Conduct Authority, as well as the Swiss Financial Market Supervisory Authority and Competition Commission having launched a probe of its own. Barclays has also made it clear that an internal investigation is underway to attempt to clear up the matter.
These attempts to learn of corruption in the banking and trading world are simply the latest installments of many such investigations in recent years. The LIBOR scandal involved international exchange rates and also involved major banking institutions. Now, it seems the pain of the LIBOR scandal may be re-lived by Barclays and other banking giants. With the recurring nature of these issues, it begs the question of whether the global banking and trading models should be re-examined and re-designed.
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