Report - Barclays and RBS will have to set aside $11bn for misconduct fines

Antony Jenkins Barclays

Barclays and Royal Bank of Scotland, which were fined $3bn on Wednesday for rigging currency markets, will have to set aside another $11bn for misconduct within two years, JPMorgan said.

Bloomberg News reports that Barclays faces a further $1.35bn for alleged manipulation of the foreign-exchange market, particularly a U.S. probe into electronic trading not covered by the recent settlements, JPMorgan said in a note Thursday.

RBS’s biggest potential cost is for mishandling U.S. retail mortgage-backed securities, which could be an extra $4.63bn.

While 'uncertainty around litigation costs and hence capital at Barclays has been materially reduced', the bank’s 'conduct issues still warrant caution', Raul Sinha, an analyst at JPMorgan in London wrote in the report. 'For RBS, our principal concern remains U.S. RMBS litigation which is unlikely to be resolved until early 2016'.

To access the complete Bloomberg News article hit the link below:

Barclays, RBS Seen Facing $11 Billion More in Misconduct Costs

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