Compelo Banking is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More

Barclays earmarks additional $1.2bn for potential forex penalties

British banking and financial services company Barclays has earmarked an additional £800m ($1.2bn) in a bid to cover potential legal action and penalties related to alleged foreign exchange (forex) market rigging.

Barclays HQ

According to media sources, the lender is close to a settlement with global regulators over the alleged manipulation.

Barclays further said that it has provisioned for another £150m for mis-selling of payment protection insurance (PPI) costs.

In November last year, the lender pulled out of a settlement between some authorities and six rival banks citing failure to reach any deal with New York’s regulator.

The regulator may finalize the deal in May if it barred a probe of the possible rigging of rates through computer programs.

Barclays finance director Tushar Morzaria told reporters that the extra provision set aside reflects the further discussions it is holding with various global regulators and agencies.

In October 2014, Barclays had set aside £500m in the third quarter to settle probe into the alleged manipulation of the foreign-exchange market.

Reuters then cited unnamed sources as saying that the lender is one of six banks in talks with UK regulators to pay nearly £1.5bn in a group settlement.

The banks reached a settlement with regulators in the US and UK in 2014 over allegations they were trying to rig the forex market.

Image: Barclays’ main headquarter in Canary Wharf, London Borough of Tower Hamlets. Photo: courtesy of C Ford