Big Banks In Murky Waters, Now Accused For FX Manipulation
Zacks Investment Research | Nov 07, 2018 08:10PM ET
Amid widespread global investigation by U.S., British and Swiss regulators into the alleged foreign exchange market manipulation, 16 major global banks have been sued by a group of large institutional investors, including BlackRock Inc (NYSE:BLK) , public pension fund California State Teachers' Retirement System (CalSTRS) and Allianz (DE:ALVG) SE's Pacific Investment Management Co, for such manipulation. Banks have been accused for rigging prices in the $5.1 trillion-a-day foreign exchange market.
On Wednesday, in the U.S. District Court in Manhattan, the lawsuit was filed by the plaintiffs. Notably, they have taken the decision to "opt out" of worldwide alike litigation that inculcated $2.31 billion (£1.76 billion) of settlements with 15 of the banks. Notably, the opt out option is used with the hope of recovering more by suing personally.
Accused banks include Bank of America (NYSE:BAC) , Barclays PLC (NYSE:C) , BNP Paribas (PA:BNPP), Citigroup (NYSE:C) , Credit Suisse (NYSE:C) , Deutsche Bank (NYSE:DB) , Goldman (NYSE:GS) , HSBC Holdings PLC (NYSE:C) , JPMorgan (NYSE:JPM) , Morgan Stanley (NYSE:MS) , Mitsubishi UFJ (NYSE:MUFG) , Royal Bank of Canada (NYSE:RY) , Royal Bank of Scotland (NYSE:RBS) , Societe Generale (PA:SOGN), Standard Chartered (LON:STAN) and UBS Group AG (NYSE:UBS) .
Among the above mentioned banks, major U.S. banks, including JPMorgan and Citigroup, carry a Zacks Rank #2 (Buy), while BofA has a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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