Citigroup Inc has agreed to pay a penalty of almost 70 million rand (US$5.4 million) to settle a South African antitrust investigation that said the US bank participated in an alleged cartel to manipulate the value of the rand.
Citigroup will make available witnesses to help prosecute other banks that participated in price fixing and market allocation in the trading of foreign-currency pairs involving the rand, the Pretoria-based Competition Commission said in an e-mailed statement on Monday.
The agreement “was done to encourage speedy settlement and full disclosure to strengthen the evidence for prosecution of the other banks,” Commissioner Tembinkosi Bonakele said in the statement.
The South African probe is the latest investigation into alleged rigging by the world’s biggest banks of the US$5.1 trillion-a-day market for products tied to foreign exchange, which has resulted in more than US$10 billion of penalties since Bloomberg first revealed manipulation in 2013.
Former Citigroup trader Christopher Cummins and ex-BNP Paribas SA employee Jason Katz have pleaded guilty to allegations in the US for rigging emerging-market currencies; both were identified in the Competition Commission investigation.
“There could well be other settlements now that it seems the parties are prepared to come forward,” Patrice Rassou, head of equities at Sanlam Investment Management in Cape Town, said in an e-mailed response to questions on Monday.
“Citi is pleased that the matter has been settled,” the bank said in an e-mailed statement. “We will continue building upon the changes that we have already made to our systems, controls, and monitoring processes.”
Barclays PLC and its units that have been named in the investigation may get the same sort of deal as Citigroup from South African antitrust authorities. It will not be targeted for prosecution because the UK bank cooperated with regulators, three people familiar with the matter said last week.
Citigroup and Barclays were named as part of the rand-rigging probe when it first started in 2015.
The commission on Wednesday last week referred the matter to South Africa’s Competition Tribunal, which is to hold hearings before deciding what penalties should be imposed.
The commission said that Bank of America Merrill Lynch, HSBC Holdings PLC, BNP Paribas SA, Credit Suisse Group AG, JPMorgan Chase & Co, Nomura International PLC, Commerzbank AG, Macquarie Group Ltd, Australia & New Zealand Banking Group Ltd, Investec Ltd, Standard Chartered PLC and Standard Bank Group Ltd should be fined.
The administrative penalty paid by Citigroup does not exceed 10 percent of the lender’s annual turnover, the commission said.
While the commission recommended the banks be fined 10 percent of their turnover, the maximum allowed, the tribunal will determine the penalty based on “affected revenue” from their foreign exchange units and the period over which the transgressions took place, Simon Roberts, a director of the University of Johannesburg’s Centre for Competition, Regulation and Economic Development, said last week.
“Telling on mates and getting away easy is always a tough one, but it does promote whistle-blowing,” said Simon Brown, Johannesburg-based chief executive officer of trading company JustOneLap.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS