Banks fix currency exchange markets
For years now the high street banks have been overcharging millions of consumers and businesses when making currency exchange payments. We are not talking about small payments say for a few hundred quid. We are talking about hundreds of thousands overcharged when consumers have purchased an overseas property and used their bank to make to currency exchange payment.
We are also talking about the hundreds of millions overcharged to businesses who at the time thought their bank was helping them and they were getting a corporate foreign exchange rate, but instead they were getting ripped off.
Now compare money transfer can confirm that this scandal was not enough for the high street banks as the biggest banks around the world with a large proportion situated in the UK and USA have agreed to pay $4.3 billion to settle an investigation into their alleged rigging of foreign exchange rates. So as they are paying we can in fact say they were rigging the foreign exchange markets and this amount is a drop in the ocean to the profits they have made from citizens in the UK, USA and around the world.
With the currency price rigging now brushed under the carpet before the full extent can be revealed, Barclays bank are the first to settle on the Libor case in a hope to distance itself from the latest rigging scandal.
So what is the latest bank scandal?
The banks which have been fined are UBS, Citigroup, Chase, Royal bank of Scotland, HSBC, The bank of america and Barclays were accused of tampering with currency exchange interbank rates on the grey area regulated $5.3 trillion a day foreign exchange market. Bankers managing the foreign exchange markets for the banks worked together in unison sending messages to manipulate currency benchmarks which in turn boosted the bank profits to ludicrous profit levels.
Millions of companies and consumers transferring personal money rely on high street banks to settle their foreign exchange transactions, but not only have they been giving them a poor exchange rate they have also been widening the markets where one bank is helping another bank to manipulate the currency market.
So what are the banks paying?
The following banks have all reached settlements Royal Bank of Scotland, HSBC, UBS, Citigroup, JPMorgan ,Chase and Bank of America Barclays is currently talking with individual regulators to work out a deal.
Royal Bank of Scotland settlement figure is $634 million.
HBSC settlement figure is $618 million
Citigroup settlement figure is $1.02 billion to three regulators in the US and UK,
JPMorgan settlement figure is $1 billion.
UBS settlement figure is $800 million.
Bank of America settlement figure is $250 million.
Take in to consideration if your business was caught up in the amount of scandal price rigging and overcharging consumers and businesses on a daily basis you would be either in jail or have your business taken away but high street banks seem to be able to play above the rules and continue to rip of the average person.