Global forex-rigging fines may reach $41bn

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The cost for banks to settle probes into allegations traders rigged foreign-exchange benchmarks could hit as much as $41 billion, Citigroup analysts said.

Bloomberg News reports that Deutsche Bank AG is seen as probably the 'most impacted' with a fine of as much as $6.5bn, Citigroup analysts led by Kinner Lakhani said Monday, estimating the Frankfurt-based bank’s settlements could reach 10% of its tangible book value, or its assets’ worth.

Using similar calculations, Barclays could face as much as $4.8bn in fines and UBS penalties of $4.6bn, they wrote in a note first sent to clients on Oct. 3.

Authorities around the world are scrutinizing allegations that dealers traded ahead of their clients and colluded to rig currency benchmarks. Regulators in the U.K. and U.S. could reach settlements with some banks as soon as next month, and prosecutors at the U.S. Department of Justice plans to charge one by the end of the year, people with knowledge of the matter have said.

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Forex-Rigging Fines Could Hit $41 Billion Globally: Citi

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