Barclays takes steps ahead of forex fines

Barclays bank has taken steps to put aside money to cover possible forex fines.

The company has reserved a further £500 million to cover the cost of ongoing investigations into its role in the rigging of currency markets.

In 2012, Barclays was fined £290 million for manipulating the Libor, but is expected the Financial Conduct Authority (FCA) is set to head out even large penalties over the forex scandal.

So far the FCA has fined six banks after it concluded its investigation into foreign exchange rate irregularities.

HSBC, Royal Bank of Scotland, Swiss bank UBS and US banks JP Morgan Chase, Citibank and Bank of America were jointly fined £2.6 billion because of their involvement in attempts to influence exchange rates.

Barclays refused to reach a joint deal with the other banks and the regulator.

“After discussions with other regulators and authorities, we have concluded that it is in the interests of the company to seek a more general coordinated settlement,” said a statement from Barclays.

As well as the fines, the FCA is likely to recommend further steps to be taken to tackle the culture within the banking sector and ensure they work in the interests of customers and shareholders.

Once the investigation is completed, the FCA is set to release transcripts of emails and electronic chats.

Tushar Morzaria, Barclays finance director, explained the decision to set aside £500 milion did not disclose on Thursday when any regulatory announcement might be made but said the was “the best estimate [based] on the dialogue we are having with certain regulatory agencies”.

Barclays also recently revealed its figures for the third quarter if the year, in which the bank also took an extra £170 million to cover the cost of payment protection insurance (PPI) misselling.

The bank also confirmed recent performance of its investment arm had been hit by the number of fines being imposed by regulators in the UK and US.