Banks in Trouble: Investor Lawsuits Filed as Rate-Fixing Probe Widens
As the multi-fronted investigation into the alleged manipulation of foreign exchange rates widens, a dozen large investors have joined forces to sue the 12 banks accused of conspiring to rig global foreign exchange prices, according to a consolidate complaint seen by The Wall Street Journal. The class action lawsuit was filed Monday in the U.S. District Court of the Southern District of New York.
As the investor lawsuit shows, regulatory authorities are not the only source of legal woes for the banks allegedly involved in rate fixing.
The banks named in the lawsuit are Bank of America (NYSE:BAC), Barclays (NYSE:BCS), BNP Paribas (BNPQY.PK), Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), Goldman Sachs (NYSE:GS), HSBC (NYSE:HSBC), JPMorgan Chase (NYSE:JPM), Morgan Stanley (NYSE:MS), Royal Bank of Scotland (NYSE:RBS), and UBS (NYSE:BCS). Representatives for these banks either would not give comment to The Wall Street Journal or could not be reached.
According to the complaint, obtained by the Journal, the investors pursuing the lawsuit accused the banks of communicating “with one another, including in chat rooms, via instant messages, and by emails, to carry out their conspiracy” to rig foreign-exchange rates as far back as January 2003.