Three Canadian banks to face justice following conspiracy to falsify foreign exchange rates

Following the incident of UBS, BNP-Paribas and Bank of America conspiracy to falsify foreign exchange rates, the three banks have paid a litigation charge of almost $16M. The conspiracy which could possible affect investors in Canada was quickly handled.

In addition to the payment, the three banks: Swiss bank, French leading BNP-Paribas, and Bank of America promised to give out information about other banks that also benefited in some way from the falsified foreign exchange rate which had been going on for over ten years.

Speaking for Canadian investors, lawyer Robert Gain expressed that “additional to the financial steeltment the banks have made, they will also aid to bring to light the other banks involved in the conspiracy.”

Responding to questions, UBS spokesperson explained that the bank is delighted to have settled the issue but no responds have been heard from the other two banks.

For the other remaining banks that are yet to be known, the face “benchmark rigging” lawsuit which requires a $1 billion compensation.

According to Gain, a substantial number of Canadian has been affected by this misconduct directly through their banking activities and indirectly in their investments as a result of changes in currency rates.

It is claimed that dealers associated with the banks were also involved with chat room names like The Cartel, The Bandit’s Club and The Mafia who came together to discuss trade transactions that could influence the foreign exchange.

The banks had discussed behind closed downs, privileged client information and their banking transactions which they in turn disclosed to foreign exchange traders at other banks.

Financial authorities were not pleased at the conducts of these banks stating the banks were guilty of falsifying foreign exchange market figures.  Aside from the $1.7 billion fine for the banks, each bank has decided to pay over $100 million as compensation to deal with the lawsuit in the U.S.

According to reports from the Britain’s Financial Conduct Authority it was discovered that USB did not handle its Zurich voice trading operations appropriately.