LIBOR Settlements may Ease the Investigations into Potential FX Benchmark Manipulation

This Financial Times article highlights the weak position in which the money center banks find themselves vis-a-vis the regulators' investigations into potential manipulation of FX benchmark fixes.  In addition to the potential for large fines and a wave of civil litigation, as reported to the FT by the US DOJ, the LIBOR settlements for several banks included pledges for the banks to co-operate with investigations into all benchmark manipulations.

Thus in addition to banks co-operating to uncover any wrongdoing by their employees, or to seek a first mover advantage in securing possible leniency or immunity, these prior agreements may be part of the reason for the reports of numerous investigations and quick turning over of findings by banks.