Banks caught up in the British investigation into alleged manipulation of global currency markets are pushing for a coordinated settlement that would reduce their exposure to potential reputational damage, banking and legal sources told Reuters.
Reuters reports that in the year since the scandal surfaced, regulatory authorities have yet to show proof of criminal activity or manipulation of benchmark exchange rates, the sources said, adding that a deal with Britain's top financial regulator could be agreed by the end of the year.
The sources said that a settlement with the Financial Conduct Authority (FCA) is now being sought on the basis of banks acknowledging lax internal compliance, oversight failures and market conduct breaches by individual employees, but not deliberate manipulation of the $5 trillion-a-day market.
One source involved in the talks acknowledged that all sides are keen to wrap up the main part of the investigation, given how long it has been dragging on, and that the plan is to co-ordinate the settlements.
Two separate banking sources with knowledge of the investigation said a settlement could be reached this year, with one of them saying that it is likely be a coordinated agreement.
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