Royal Bank of Scotland Group PLC and Barclays PLC troubles are mounting as regulators fined Mexico branches $2.8 million (37 million pesos) for public debt trading that was deemed “contrary to healthy market practices.” Bank of America (BoA) was also fined for shady trading activity in relation to a Merrill Lynch unit previous to their purchase by BoA.
The fines were tied to transactions in 2008, according to the CNBV, Mexico’s banking and securities commission. Merrill Lynch was fined the highest at 23 million pesos with BoA fined 7.2 million pesos.
Representatives from all three institutions failed to comment on the matter as dark clouds cast over these large institutions due to manipulation in foreign-exchange, bond, and future markets.
JP Morgan has been the newest institution added in the global foreign-exchange probe. JP Morgan touched on the matter via a quarterly filling with the Securities and Exchange Commission (SEC). “These investigations are in the early stages and the firm is cooperating with the relevant authorities” said the firm. JP Morgan has been blistered with over $13 billion in costs related to settlements and court fees from misguided market participation.
JP Morgan and Citigroup relieved their top currency dealers of their positions as regulators are still examining the true intent of traders’ communication and activities. Barclays PLC suspended three FX dealers, including their chief London dealer.