United States v. Citicorp
United States District Court for the District of Connecticut
No. 15-CR-78 (May 20, 2015)
- Written by Tanya Munson, JD
Facts
Between December 2007 and January 2013, euro-dollar traders at Citicorp (defendant), JPMorgan, Barclays, and RBS used an exclusive chat room and coded language in order to manipulate benchmark exchange rates in the foreign exchange (FX) spot market and increase profits. The United States Department of Justice (DOJ) (plaintiff) launched an investigation into this behavior. The DOJ subsequently brought actions against Citicorp and the other banks in district court. In May 2015, Citicorp agreed to plead guilty to a felony charge of conspiring to fix prices and rig bids for United States dollars and euros exchanged in the FX spot market. Citicorp agreed to a three-year period of corporate probation that would be overseen by the court. The probation required regular reporting to authorities and cessation of all criminal activity. Citicorp had agreed to send disclosure notices to all of its customers and counterparties that may have been affected by the illegal sales and trading practices. Citicorp was required to disclose that it engaged in practices such as adding markups to price quotes, working limit orders at levels better than the limit-order price without informing clients so that Citicorp would earn a spread or markup, and deciding not to fill clients’ limit orders at all or in part in order to profit from a spread or markup in connection with the order execution.
Rule of Law
Issue
Holding and Reasoning ()
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