Citigroup Inc (NYSE:C), the leading bank has confirmed that it will settle the antitrust charge by pleading guilty in front of the Justice Department. The antitrust charge has been levied against the bank accusing it to be one of the bank traders that rigged foreign-exchange rates. The regulatory filing from the bank says that it is currently discussing the issue with the Justice Department and will find a way to settle the foreign-exchange accusations.
Apart from the Citigroup, several other big banks have come under the wrath of the judiciary and have been accused of manipulating the trading during a foreign exchange according to their need. At times, making changes in foreign-exchange rules have cost the clients heavily and hence the accusations were made on these banks. The banks are now expecting a settlement with the Justice Department.
Citigroup and Other Banks to Plead Guilty
According to the report published in The Wall Street Journal, the Citigroup Inc (NYSE:C), Barclays PLC, J.P. Morgan Chase & Co. and the Royal Bank of Scotland Group will be pleading guilty to the criminal antitrust charges. It is the first time since its inception that the Citigroup will be pleading guilty to settle the charges with the Department of Justice.
The bank has already acknowledged that the Department of Justice is scanning its foreign-exchange business. A statement issued by J.P. Morgan Chase & Co. says that the bank is in advanced stages of discussions with the Department of Justice and with the Federal Reserve for settling the foreign-exchange dispute.
Citigroup, along with several other banks had made a settlement with the U.S. and British regulators in the last year’s November over similar accusations. To settle the dispute the group had paid around $1billion to the Financial Conduct Authority and the Commodity Futures Trading Commission in the UK and the Office of the Comptroller for the Currency, US. However, during these settlements the banks were not asked to plead guilty.