Benchmarking fines could cost banks $40 billion, says Citi

Analysts believe the impact is already priced in as Ficc revenues rise

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The banking industry could be facing fines totalling $40 billion for the alleged manipulation of FX benchmark rates, according to a research note from equity analysts at Citi.

The UK Financial Conduct Authority is in talks with six banks to establish a group settlement, currently believed to be about £1.8 billion. The Citi research note, written by Kinner Lakhani, extrapolates the $40 billion figure using a ‘multiplier' effect for additional penalties from US and European regulators.

The note

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