Citigroup says it could plead guilty to Antitrust Charge

Citigroup says it could plead guilty to Antitrust Charge

According to Citigroup, it could plead guilty to an antitrust charge so as to resolve a US Department of Justice investigation of its dealings in foreign exchange markets.

The company said in a regulatory filing on Monday that the Justice Department was not looking forward to prosecute the bank in a different investigation into the setting of interest rates between banks. Over the past year, the banks have been investigated by global authorities, together with the DOJ, in an attempt to manipulate rates in the foreign exchange market.

According to reports, the banks have been charged with sharing confidential information regarding client orders together with coordinating trades from 2008 until October 2013 in an attempt to increase their own profits.

Bloomberg said while referring to sources, that the DOJ had been forcing Citigroup's main unit to plead guilty to criminal charges. According to Bloomberg, Citigroup had argued against an offer that the plea come from a subsidiary, which is a smaller than the Citibank NA unit. Bloomberg said that the related fine is expected to not go beyond $1 billion.

According to Peter Henning, a law professor at Wayne State University in Detroit, "The criminal case, which has ensnared other banks, has passed by Citigroup. So while not a complete free pass, it takes away what many perceive to be the greatest threat, which is from the Department of Justice".

According to The Wall Street Journal, a regulatory filing from the bank also disclosed that Citigroup Inc. is in 'active discussions' regarding a settlement with the DoJ. The bank is one of those institutions that have been charged for taking a competitive advantage by manipulating foreign-exchange markets.