Barclays Also Likely to Be Fined For Libor Settlement Breach

Bloomberg says that according to sources familiar with the matter, in addition to the penalty that Barclays Plc (BCS) is expected to pay to resolve the U.S. Justice Department’s case for interest currency benchmark rigging, the bank will also likely have to pay a fine for violating an earlier settlement reached over interest rate rigging.

These sources say that as of a few weeks ago, the fine was at around $60 million, although negotiations are ongoing. If Barclays is fined it would be the second bank to be subject to penalization for such a violation.

The firm had arrived at a non-prosecution deal with the DOJ over allegations that it rigged the London interbank offered rate, even as it agreed in 2012 to pay $452.3 million to the DOJ, the Commodity Futures Trading Commission, and U.K.’s Financial Services Authority. As part of the non-prosecution agreement, Barclays consented not to commit criminal actions.

As our securiites law firm mentioned in an earlier blog post, Barclays is expected to enter a guilty plea related to currency rigging charges shoot with fines likely to exceed $1 billion to the DOJ, New York’s Department of Financial Services, and U.K.’s Financial Conduct Authority. Also expected to enter guilty pleas: JPMorgan Chase & Co. (JPM), Royal Bank of Scotland Plc (RBS), and Citigroup (C).

UBS Group AG (UBS) is expected to enter its own guilty plea to charges involving its settlement over Libor rigging. The Swiss-based bank has admitted to taking part in manipulating currency benchmarks, which violated an earlier agreement with the U.S. DOJ. In that deal, the firm promised to refrain from committing additional crimes.

Barclays said to face US fine for breaching libor settlement, Business Times, May 15, 2015

Barclays Said to Face US Fine for Breaching Libor Settlement, Bloomberg, May 14, 2015

More Blog Posts:
NY Sues Barclays Over Alleged High Speed Trading Favors in Dark Pool, Stockbroker Fraud Blog, June 26, 2014

Barclays, Citigroup, J.P. Morgan Chase & Royal Bank of Scotland to Settle FX Rigging Allegations, Institutional Investor Securities Blog, May 7, 2015