Barclays Allocates £500m for FOREX Penalties

BarclaysBarclays Bank has allotted £500m for current investigations into the alleged manipulation of foreign exchange involving several primary lending institutions.

This condition is bigger compared to the £290m penalty for manipulation of the Intercontinental Exchange London Interbank Offered Rate or LIBOR in 2012.

Meanwhile, the Financial Conduct Authority (FCA) is working on a settlement with six large banks in connection with their roles in the £3.5 trillion daily FOREX markets.

FCA will disclose results of its probe along with degree of penalties in November. Royal Bank of Scotland is also part of said probe and will possibly apportion funds for future penalties.

The publication of the regulatory action may include transcriptions of email messages and electronic chats associated with the scandal.

Barclays bared figures for the third quarter. It took an additional £170m hit for payment protection insurance (PPI).

The fine is the latest in a series of punishments imposed on the bank. Barclays acknowledged that fraud claims affected the performance of its investment bank and profits decreased significantly.

During the third quarter, profits dropped more sharply from £465m to £284m one year ago.

Almost 7,000 of job cuts affected the investment bank’s 24,000 employees.

Barclays released £160m of the total £1.5bn provision. The PPI indignity is the most expensive so far incurred by the banking sector.

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