Regulators fine global banks $3.4 billion in forex probe

(Reuters) - Regulators fined five major banks $3.4 billion for failing to stop traders from trying to manipulate the foreign exchange market, the first settlement in a year-long global investigation.

UBS (UBSN.VX), HSBC (HSBA.L) and Citigroup (C.N), Royal Bank of Scotland (RBS.L) and JP Morgan (JPM.N) all face penalties resulting from the probe that has also put the largely unregulated $5 trillion-a-day market on a tighter leash. One regulator gave banks a 30 percent discount for settling early.

In the latest scandal to hit the financial services industry, dealers shared confidential information about client orders and coordinated trades to make money from a foreign exchange benchmark used by asset managers and corporate treasurers to value their holdings. Dozens of traders have been fired or suspended.

Dealers used code names to identify clients without naming them and created online chatrooms with pseudonyms such as "the players", “the 3 musketeers” and “1 team, 1 dream” in which to swap information. Those not involved were belittled.

[color=rgb(63, 69, 73)]Oh, great...they settled. Isn't it ironic that when a Bank or Corporation commits fraud or other white collar crimes they "settle" the matter, yet if a private citizen commits a crime, they go to jail. We afford a much more gracious out for these companies, when we should really be setting an example.[/color]
[/color][color=rgb(63, 69, 73)]After the Great Recession they should have tried these people in an International Court for crimes and sentenced the Board of Directors of them to life in prison with no parole. Perhaps for their multi-billion dollar attempts to defraud the market, this group should be tried for treason against their various governments and sentenced to death. Until the cost (their lives) outweigh the risks (profits) these criminals are going to continue to do this.[/color]
[/color][color=rgb(63, 69, 73)]They paid 3 billion in fines, but how much did they make? And while the Governments seize the money, who is planning on reimbursing all the people who lost money at their expense? Oh, no one...right.[/color]