Banks agree $2bn US foreign exchange settlement

Investors have recovered more than $2 billion (1.28 billion pounds) in settlements with nine banks over claims of price-rigging in the foreign exchange market, and are continuing to pursue claims against seven other banks, a lawyer for the plaintiffs said Thursday. They added that “We look forward if necessary to litigating through trial”, and warned that this is “just the beginning”.

The exact amount each individual bank would have to pay was not disclosed, but a person familiar with the matter flagged a figure of $129.5 million for Goldman, while anonymous sources cited by The Wall Street Journal in June estimated that Barclays’ settlement cheque could amount to $375 million, while HSBC was tipped to pay $285 million.

Michael D. Hausfeld, Chairman of Hausfeld praised the settlements: “As a result of lengthy, hard-fought negotiations, we have obtained historic recoveries on behalf of U.S. investors”. Those numbers remain unconfirmed, and the banks on Thursday either declined comment or did not respond to requests for comment.

Hausfeld, which represented investors, gave no indication how the sum would be divided between the banks and said that the agreements were preliminary and should still be approved by US District Judge Lorna Schofield.

The class-action lawsuit was launched in 2013 and accused most of the world’s leading investment banks of conspiring to manipulate the forex market, causing the claimants to incur unjustified losses.

It’s another round of payouts after six banks, including Barclays and RBS were, in May, ordered to pay US$6bn (£3.84bn) by UK and US authorities.

US banking giant JPMorgan Chase agreed to pay $99.5m in January, followed by Bank of America at $180m, Citigroup at $394m and Swiss UBS at $135m.

“Investors around the world should take note of the significant recoveries secures in the United States and recognise that these settlements cover a fraction of the world’s largest financial market”. For a period of three years, in chat groups with names such as “The Cartel” and “The Bandits’ Club”, bank traders shared information with competitors allowing them to execute their own trades before filling client orders.

The firm also noted that it was considering “concerted action” in London.