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Regulators still at war over rogue traders

Banks facing further £3.8bn fines over forex scandal

RBS hqRoyal Bank of Scotland will once again be forced to pay a hefty fine this week as one of five banks facing a huge settlement bill with US authorities over rigging of foreign currency rates.

RBS and Barclays, together with US giants Citigroup and JP Morgan and the Swiss lender UBS will be ordered to pay a  combined £3.8 billion.

It will be the latest penalty imposed on the banks for the behaviour of rogue traders in the rigging of the £3.5 trillion-a-day foreign exchange (forex) market.

It is understood the banks will plead guilty to criminal charges this week, although a number of legal matters may hold up proceedings which were supposed to take place last week.

Barclays will take the biggest hit –  £2billion. RBS, JP Morgan and Citigroup are all expected to pay around $1billion (£634million) each. UBS will receive a smaller penalty because it alerted regulators about wrongdoing.

Barclays is also expected to face a £250m fine from the Financial Conduct Authority this week. It was the only of the five not to settle with the regulator last November when fines of £2.6bn were imposed on them.

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