The next big scandal could be bigger than Libor

Money On Hook

Yet another dark cloud is looming over global banks as officials examine their behaviour in the massive foreign exchange market, threatening to deal a new blow to earnings and reputations.

CNN Money reports that regulators in the U.S., Europe and Asia are in the early stages of investigating whether traders at the world's top banks manipulated foreign exchange benchmarks to profit at the expense of their clients.

Goldman Sachs, Citigroup, JP Morgan, Deutsche Bank, Barclays, Royal Bank of Scotland, UBS and HSBC are among the firms in their sights.

Financial lawyers say the probe could have steep and uncertain consequences as the impact of currency market abuse would reverberate far beyond Wall Street.

It's unwelcome timing for an industry already fighting a raft of legal battles over foreclosure abuses, misleading investors over mortgages and payment protection insurance. And then there's the Libor scandal.

A global investigation into the setting of the London interbank lending rate, and related global benchmarks, has so far yielded about $3.6bn in fines. Penalties for some of the biggest players are still to come. Traders have also faced criminal charges.

To access the complete CNN Money article hit the link below:

Bigger than Libor? Forex probe hangs over banks

JPMorgan can deduct big chunk of $13 billion deal 

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