Bloomberg News reports talks are progressing between banks, the U.S. Federal Reserve and the Office of the Comptroller of the Currency to settle investigations into alleged manipulation of foreign-exchange markets, according to two people, who asked not to be identified because the discussions are private.
Some firms have received so-called 15-day letters outlining the agencies’ findings and warning that enforcement actions are likely, the people said.
Enforcement actions can range from cease-and-desist orders to fines to banning bankers from the industry. The letters typically detail the investigators’ findings and give recipients about 15 days to offer a written defense. Such notices usually open a final stage of settlement negotiations.
U.S. regulators are coordinating with the U.K.’s Financial Conduct Authority to settle some of the probes by November, according to two people. The FCA is in settlement talks with firms including Barclays Plc, Citigroup, HSBC, JPMorgan, Royal Bank of Scotland and UBS. It scheduled meetings with some banks for as soon as next month to discuss penalties, the people said.
A few investigations are taking longer, and talks with firms such as Bank of America Corp. and HSBC haven’t progressed as far, according to some of the people.
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