It seems that banks still have lots to answer to when it comes to their forex activities. As of today, US lawyers are preparing multimillion pound legal action against 12 banks, including three of the Big Four banks.
HSBC, RBS and Barclays, along with JP Morgan and Citigroup are some of the accused banks. US Law Firm Scott and Scott will be taking action against the latter.
Many analysts believe that the forex rigging is a conspiracy as many of the banks named have already paid out millions of pounds.
According to Scott and Scott US managing director David Scott:
“It is very safe to say that the damages suffered by the clients are in the tens of billions of dollars,” he told me.
“We’ve been over [here] meeting with central banks, pension schemes, large multinationals who have asked us to determine if they have been harmed as a result of the conspiracy.
“We have met with central banks and they have expressed an interest – they are interested in the institutional knowledge that we have gained litigating the forex case in the United States.
“We have developed a model that allows us to give a pretty good idea of what their damages are if they traded foreign currency.”
Along with the possible multimillion pound fine is the £26 billion mis sold PPI compensation package.