The legal battle over the forex scandal continues. After the agreement announced last week in New York, investors in London, Hong Kong and Singapore are also preparing to sue and in a few months they will ask for compensation of tens of billions of pounds from the banks that have manipulated the foreign exchange market.
“There will be even more claims in London than in New York because it's a much bigger market for forex,” said David McIlroy, attorney at Forum Chambers. Hedge funds, pension funds and other investors who are convinced they have been defrauded are ready to do battle.
Last week in New York, the number of institutions that agreed to compensate investors for a total of two billion dollars rose to nine: Citigroup, Bank of America, Ubs and JP Morgan were joined by HSBC, Barclays, BNP Paribas, Goldman Sachs and the Royal Bank of Scotland.
Meanwhile, negotiations continue with seven other banks involved: Bank of Tokyo-Mitsubishi, Rbc Capital Markets, Société Générale, Standard Chartered, Deutsche Bank, Credit Suisse and Morgan Stanley.
British and American authorities have already imposed nearly $6 billion in fines on banks found guilty of manipulating the foreign exchange market.
