Barclays PLC, NatWest Group PLC and HSBC PLC fined €344mln over forex

Barclays, Natwest Group PLC, HSBC PLC (LSE:HSBA) and Swiss bank Credit Suisse have been landed with fines totalling €344mln by European regulators for a foreign exchange rigging scam.

UBS avoided a potential €94mln fine from the European Commission as it blew the whistle on the chatroom set up by foreign exchange traders at the banks.

The “Sterling Lads” cartel had focused on forex spot trading in ten major currencies.

HSBC received the largest fine at €174.3mln with Credit Suisse paying €88.3mln, Barclays €54.3mln and RBS, now called NatWest, €32.5mln.

All the UK banks admitted complicity in return for a lower penalty.

NatWest said the misconduct took place in a single chatroom and involved a former employee about a decade ago since when its business practices have been completely overhauled.

The European Commission said the cartel members swapped in formation, trading plans and occasionally coordinated trading strategies when buying and selling currencies.

“Today we complete our sixth cartel investigation in the financial sector since 2013 and conclude the third leg of our investigation into the foreign exchange spot trading market,” EU antitrust chief Margrethe Vestager said in a statement.