The Federal Reserve is fining six banks, including Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc., a total of more than $1.8 billion for “unsafe and unsound practices” in foreign-exchange markets.
Bank of America was fined $205 million and Royal Bank of Scotland Group Plc $274 million, the Fed said in a statement Wednesday. Citigroup, JPMorgan, UBS AG and Barclays Bank Plc were each penalized $342 million, it said.
The Fed said it is requiring the banks to “correct deficiencies in their oversight and internal controls over traders who buy and sell U.S. dollars and foreign currencies for the organizations’ own accounts and for customers.”
The firms failed to “detect and address improper actions by their traders,” including the disclosure in online chat rooms of “confidential customer information to traders at other organizations,” the Fed said.
The Fed said the fines were among the largest ever imposed by the central bank.
Federal Reserve Press Release and Documents:
- Press Release
- Bank of America Corp.
- JPMorgan Chase & Co.
- Barclays Bank Plc
- The Royal Bank of Scotland Group Plc
- Citigroup Inc.
- UBS AG