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'.
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