Citi may end up pleading guilty to currency market manipulation

Trader lossesREUTERS/Luke MacGregorA dealer reacts while speaking with a client on the trading floor at financial spread betting company IG Index in the City of London August 7, 2013.

Citi warned, in a regulatory statement filed in the United States, that it is could plead guilty to Department of Justice allegations over currency market manipulation.

It said: “a resolution with the Department of Justice could include a guilty plea on an antitrust charge.”

The DoJ is probing six banks, including Citi, for attempted rigging of foreign exchange rates.

In November last year, Citi was fined $US359 million (£230 million) for FX fixing by the Financial Conduct Authority (FCA) and the US Commodity Futures Trading Commission (CFTC).

HSBC already paid $US343 million (£220 million), JPMorgan $US352 million (£226 million), the Royal Bank of Scotland $US344 million (£220 million) and UBS $US371 million (£238 million) to settle currency market manipulation allegations with the same regulators.

The currency market is one of the largest and most liquid markets in the world. It has a daily average turnover of over $US5 trillion (£3.2 million).

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