jeudi 2 avril 2015
U.S. to Press for Guilty Plea From Citibank in Currency Probe
Posted on 17:07 by nice news
The U.S. Department of Justice is pressing for Citigroup Inc.’s main banking subsidiary to plead guilty to a felony tied to the rigging of foreign-exchange markets, according to two people briefed on the matter.
Citigroup has countered with an offer that the plea come from a subsidiary that’s smaller than the Citibank NA unit, the people said, asking not to be identified discussing private negotiations. An agreement could come as soon as May and the related fine probably won’t exceed $1 billion, one of the people said. Two other people said the Justice Department is weighing all options and hasn’t decided on a particular entity.
A guilty plea by its main banking unit might threaten Citigroup’s ability to operate certain types of businesses through that subsidiary, which accounted for more than 70 percent of the firm’s revenue last year. The Justice Department has been investigating banks’ alleged manipulation of currency benchmarks for almost two years, and is pressing to resolve the probe with settlements that include guilty pleas, people familiar with the negotiations have told Bloomberg.
Authorities want the pleas to come from entities of greater importance within the banks, while the companies would prefer smaller units, according to two people briefed on the talks. JPMorgan Chase & Co., for example, would rather have its U.K.- based subsidiary plead guilty, arguing the behavior occurred there, the people said.
Spokesmen for the Justice D
Citigroup has countered with an offer that the plea come from a subsidiary that’s smaller than the Citibank NA unit, the people said, asking not to be identified discussing private negotiations. An agreement could come as soon as May and the related fine probably won’t exceed $1 billion, one of the people said. Two other people said the Justice Department is weighing all options and hasn’t decided on a particular entity.
A guilty plea by its main banking unit might threaten Citigroup’s ability to operate certain types of businesses through that subsidiary, which accounted for more than 70 percent of the firm’s revenue last year. The Justice Department has been investigating banks’ alleged manipulation of currency benchmarks for almost two years, and is pressing to resolve the probe with settlements that include guilty pleas, people familiar with the negotiations have told Bloomberg.
Authorities want the pleas to come from entities of greater importance within the banks, while the companies would prefer smaller units, according to two people briefed on the talks. JPMorgan Chase & Co., for example, would rather have its U.K.- based subsidiary plead guilty, arguing the behavior occurred there, the people said.
Spokesmen for the Justice D
U.S. to Press for Guilty Plea From Citibank in Currency Probe
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