Barclays is set to be hit with even more fines from financial authorities. The institution is set to be slapped with a $100m fine to the New York Department of Financial Services for manipulating foreign exchange markets.
These new fines come off the heels of the British financial giant paying a number of other large fines. Recently Barclays has agreed to pay $120m in private litigation for its role in the LIBOR manipulating scandal, as well as being hit by British regulators in May 2015 with the biggest fine it had ever handed out.
Since the 2008 financial crisis, banks have come under increasing scrutiny and tougher regulation
and enforcement
As the UK’s Financial Conduct Authority noted at the time, the FCA imposed the fine on the bank “for failing to control business practices in its foreign exchange (FX) business in London. This is the largest financial penalty ever imposed by the FCA, or its predecessor the Financial Services Authority (FSA).”
Similar charges are behind the new expected penalties by the New York regulator; however the fine itself is slightly less due to the scale of the markets involved. Since the 2008 financial crisis, banks have come under increasing scrutiny and tougher regulation and enforcement, leading them to rack up record fines.
Moody’s, the independent financial regulator, recently tallied up the total cost of all fines imposed on financial institutions since 2008, finding that it reached a total of 219bn, with US banks accounting for the largest share of this.
Barclays had recently announced Jes Staley – formerly the CEO of JP Morgan’s investment bank – as their new CEO. This new fine will provide with his first major test, as he assumes his new role in December 2015.
