"We have been working on this case for several years, which has provided us with intimate knowledge of this conspiracy and the workings of the foreign exchange market, and that gives us a tremendous leg up in prosecuting the litigation against the non-settling banks," said David Scott, partner at law firm Scott and Scott, which is one of the firms representing the claimants. "Our case is limited to the US right now, but I think it really shows that if and when we avail ourselves of the European judicial system, there should be an opportunity for non-US claimants to seek redress." The cases in the US were brought under anti-trust rules, which limit the class action to US claimants. As London hosts the largest chunk of the foreign exchange markets, it is a leading candidate for future civil claims. Scott and Scott is setting up a UK office and has hired a lawyer to run the practice, following enquiries from investors interested in pursuing cases related to the foreign exchange markets. Law firm Hausfeld also represented investors, and in a statement said that the agreements were preliminary and must still be approved by US District Judge Lorna Schofield. In June, sources close to the situation reported that Barclays would pay $375m, HSBC $285m, BNP Paribas nearly $100m and Goldman Sachs about $130m. But they also specified that the amounts were subject to change. Some of the banks in Thursday's announcement had already agreed to specific sums. • Barclays handed biggest bank fine in UK history over 'brazen' currency rigging • Banks brace for more foreign exchange rigging pain as civil lawsuits come forth • South Korea joins the global probe into foreign exchange rigging •Allianz chief: too many bankers treat market abuse like speeding US banking giant JPMorgan Chase agreed to pay $99.5m in January, followed by Bank of America at $180m, Citigroup at $394m and Swiss UBS at $135m. Thursday's agreements are distinct from proceedings led by US and British regulators, which in May ordered $6bn in fines on six major banks - Barclays, JPMorgan Chase, Citigroup, Royal Bank of Scotland, UBS and Bank of America - for rigging foreign exchange market and Libor interest rates. Barclays, JPMorgan Chase, Citigroup and the Royal Bank of Scotland all pleaded guilty to US Justice Department charges of conspiring to manipulate the massive currency market. "While the recoveries here are tremendous, they are just the beginning," said Hausfeld chairman Michael Hausfeld. "Investors around the world should take note of the significant recoveries secured in the United States and recognize that these settlements cover a fraction of the world's largest financial market," he said. The firm also noted that it was considering "concerted action" in London.
Bank of America, Barclays, BNP Paribas, Citibank, Goldman Sachs, HSBC, JP Morgan, RBS, and UBS have agreed to pay $2bn in settlements to US investors, including hedge funds and pension funds, who claim they conspired to rig foreign exchange rates. The banks are accused of conspiring with traders at the New York Mercantile Exchange (NYMEX) – a major global derivatives market that is used by more than 90% of all financial transactions around the world – Seven other banks are also being investigated and "they are just the beginning", suggested Lawyer Michael Hausfield.