Citigroup, Morgan Stanley, HSBC and 12 other banks are being investigated for currency manipulation by Brazil’s antitrust agency after similar probes in the U.S. and Europe led to penalties of more than $10bn.
Banks coordinated currency transactions and pricing data and blocked competitors from operating freely in the Brazilian foreign-exchange market, according to the allegations.
The accusations mirror cases brought against many of the same firms by regulators in the U.S. and Europe, which reached multibillion-dollar settlements this year that included guilty pleas from banks including Citigroup and JPMorgan. South Korea and South Africa also have opened probes into whether firms colluded in foreign-exchange markets.
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