Here’s Why the U.S. Is Planning to Fine Barclays Another $100 Million

November 18, 2015, 10:53 AM UTC
Barclays trader
Barclays trader
Photograph by Jin Lee—Bloomberg via Getty Images

Welcome aboard, Mr Staley, please find enclosed Uncle Sam’s latest claims on Barclays Plc.

The blue-chip British bank is facing another fine of over $100 million in the U.S. as it prepares to settle allegations of rigging the foreign exchange market via its electronic trading platform, according to The Financial Times.

The fine is an early test of new CEO Jes Staley, a U.S. citizen and veteran of JPMorgan Chase Inc., who was said last month he aimed to resolve past misconduct issues as quickly as possible and build a more constructive relationship with regulators.

The fine adds to $485 million that Barclays (BCS) has already paid for its part in a cartel that rigged benchmark forex fixings. The FT said the amount would be smaller this time due to the smaller scale of the manipulation. Six banks involved in the benchmark rigging were asked to pay a total of $5.6 billion in fines in May after a two-year investigation by regulators.

The New York Department of Financial Services is the agency conducting the investigation into the bank. The DFS and other federal agencies also have a similar investigation outstanding into Autobahn, the electronic trading platform of Germany’s Deutsche Bank AG (DB), according to the FT.

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