Banks Braced For Further Legal Action In The UK


Barclays, HSBC, and Royal Bank of Scotland are bracing themselves for further legal action in the UK, after agreeing to pay claims totalling $924 million in the US for rigging the foreign exchange market.

In order to settle claims brought by hedge funds, pension funds, and international companies, Barclays agreed to pay $384 million, HSBC $285 million, and RBS $255 million.

However, David Scott, managing partner of Scott & Scott, the lawyers who brought the action, has indicated that his firm hasn’t even started yet.

He said that he is looking forward to present the settlements to the federal court for approval, but said that he is now gearing up to bring further actions in Europe. Claims so far agreed refer only to the US. Scott pointed out that the forex market in the UK is double the size of that in the US.

Nine Banks Have Agreed To Pay Nearly $2 Billion

In addition to the three banks already referred to, BNP Paribas, is to pay $115 million and Goldman Sachs $135 million. A total of nine banks have now agreed claims in the US adding up to close on $2 billion. However, these agreements are separate from any actions being brought by regulators in the US and the UK, including the British Serious Fraud Office.

Furthermore, there are other banks in the net which have not yet either been prosecuted or agreed claims. Scott said that having successfully brought claims in the US, and with the knowledge that his firm has acquired, he is gearing up to commence actions in Europe.