Talking Tough With the Banks
the Justice Department has informed Citigroup and JPMorgan Chase that in order to settle they must plead guilty to criminal charges for manipulating currency prices. These would be the first admissions of criminal guilt by American banks in decades.
Two European banks, Barclays and the Royal Bank of Scotland, were also told to plead guilty. But once again, in all four cases, the deals are likely to be structured in ways that minimize damage to the banks, while sparing high-ranking officials from accountability. Prosecutors are expected to pursue the banks’ currency traders for wrongdoing, but not senior executives.