New York: British financial giant HSBC has agreed to pay more than $100 million to US authorities after admitting to defrauding clients during multi-billion-dollar foreign exchange transactions, the Justice Department announced on Thursday.
The settlement follows an indictment handed down on Wednesday against a former Barclays trader similarly accused of defrauding the former California computing giant Hewlett-Packard by manipulating foreign exchange markets.
Under the terms of the agreement, which is under review by a federal judge in Brooklyn, HSBC will pay a $63.1 million fine and an additional $38.4 million in restitution and disgorgement — or the return of ill-gotten gains, the Justice Department said.
“HSBC’s admissions in connection with this resolution confirm that the company misused confidential client information for its own profit on more than one occasion,” John Cronan, the acting head of the department’s criminal division, said in a statement. — AFP
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