Barclays Pledges Cooperation With US Foreign Exchange Abuses Probe

© AP PhotoA view of Barclay's headquarter at London's Canary Wharf financial district
A view of Barclay's headquarter at London's Canary Wharf financial district - Sputnik International
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Barclays pledges to fully cooperate with investigations into foreign exchange trade and sales fraud following a fine of $650 million.

WASHINGTON (Sputnik) — Barclays will fully cooperate with investigations into foreign exchange trade and sales fraud following a fine of $650 million and a guilty plea in US court, the Bank said in a statement.

“Barclays continues to co-operate with ongoing investigations into FX (foreign exchange), LIBOR (London Interbank Offered Rate) and other benchmark investigations and precious metals and to manage related litigation risks,” the statement, issued on Wednesday, said.

The statement comes after Barclays and three other major banks — Citigroup, JP Morgan and the Royal Bank of Scotland — pleaded guilty earlier on Wednesday to trying to manipulate foreign exchange rates.

A fifth bank, UBS, pleaded guilty to rigging the LIBOR and other benchmark interest rates.

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The banks agreed to a combined fine f $5.6 billion to US and UK authorities.

Barclays has agreed to pay $650 million and to plead guilty to violating US anti-trust law.

Barclays CEO Antony Jenkins stated the Bank’s misconduct revealed the need to strengthen controls.

“We remain completely committed to that effort,” Jenkins said.

Jenkins noted that dealing with the issues, including taking the appropriate disciplinary action against the individuals involved, was “a necessary and important part of our plan to transform Barclays and remains a key priority.”

Between December 2007 and January 2013, several traders set up a cartel to manipulate the foreign exchange rates by using exclusive electronic chat room and coded language, according to the US Department of Justice.

No traders have faced criminal charges over the case, but New York's financial regulator forced Barclays to dismiss eight employees. Investigations into the misconduct of individuals at the five banks are continuing.

All five banks face a three-year corporate probation period overseen by a court, according to the US Department of Justice.

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