Legal
Morgan Stanley, RBC Settle US Lawsuit Alleging Forex Rigging
The litigation followed worldwide probes into currency manipulation that resulted in about $10 billion in fines for several large banks.
Morgan
Stanley, Royal Bank of
Canada and three other banks last week agreed to pay a total
$111.2 million to settle a US lawsuit that accused them of
maniputlating prices in the foreign exchange market.
The settlements include: $50 million for Morgan Stanley; $15.5
million for RBC, Canada's largest lender; $18 million for Societe
Generale; $17.2 million for Standard Chartered; and $10.5 million
for Bank of Tokyo-Mitsubishi. The settlements were detailed in
filings in the US District Court in Manhattan. All require judges
approval.
The banks denied wrongdoing.
Fourteen of the 16 that were sued have reportedly settled,
agreeing to shell out a combined $2.12 billion.
Investors accused banks of conspiring to rig key currency
benchmark rates, through the use of online chat rooms.
Lawyers for the investors reportedly said Credit Suisse and
Germany's biggest bank, Deutsche Bank, have yet to reach
settlement.
