The $4.3 Billion Shrug
When the UK's Financial Conduct Authority fined six banks $4.3 billion for manipulating the foreign-exchange market, investors barely blinked and share prices hardly budged. Even such a large sum is small change when compared to the total fines and litigation costs incurred by the major banks over the last five years.
LONDON – In November, the United Kingdom’s Financial Conduct Authority (FCA) announced a settlement in which six banks would be fined a total of $4.3 billion for manipulating the foreign-exchange market. And yet share prices barely reacted. Why?