By Karen Freifeld, Sarah N. Lynch and Soyoung Kim
NEW YORK, May 14 (Reuters) - Banks want assurances from U.S.regulators that they will not be barred from certain businessesbefore agreeing to plead guilty to criminal charges over themanipulation of foreign exchange rates, causing a delay inmulti-billion-dollar settlements, people familiar with thematter said.
In an unprecedented move, the parent companies or mainbanking units of JPMorgan Chase & Co, Citigroup Inc, Royal Bank of Scotland Group Plc, Barclays Plc and UBS Group AG are likely to plead guiltyto rigging foreign exchange rates to benefit their transactions.
The banks are also scrambling to line up exemptions orwaivers from the Securities and Exchanges Commission and otherfederal regulators because criminal pleas trigger consequencessuch as taking away a the ability to manage retirement plans orraise capital easily.
In the past, waivers have generally been granted without ahitch. However, the practice has become controversial in thepast year, particularly at the SEC, where DemocraticCommissioner Kara Stein has criticized the agency for rubberstamping requests and being too soft on repeat offenders.
Negotiating some of the waivers among the SEC's fivecommissioners could prove challenging because many of thesebanks have broken criminal or civil laws in the past thattriggered the need for waivers.
Many of the banks want an SEC waiver to continue operatingas "well-known seasoned issuers" so they can sell stocks anddebt efficiently, people familiar with the matter said. Such adesignation allows public companies to bypass SEC approval andraise capital "off the shelf" - a process that is speedier andmore convenient.
Several of the people said another waiver being sought bysome banks is the ability to retain a safe harbor that shieldsthem from class action lawsuits when they make forward-lookingstatements.
The banks involved are also seeking waivers that will allowthem to continue operating in the mutual fund business, sourcessaid.
At least some of the waivers at issue in the forex probewill need to be put to a vote by the SEC's five commissioners.No date has been set yet, a few of the people familiar with thematter said.
The plea deals could be announced as soon as next week, twoof the people said, adding that not all the penalties had beenfinalized yet.
Peter Carr, a spokesman for the U.S. Justice Department,declined comment on the timing or reason for a possible delay ofany agreements. Citi, JPMorgan, RBS and UBS did not respond torequests for comment. A Barclays spokesman declined to comment.
The Justice Department has been negotiating with the banksfor months over how to resolve allegations that traders colludedto rig rates in the largely unregulated $5.3 trillion-a-daycurrency market.
If the parent companies of U.S.-based JPMorgan and Citigroupplead guilty as planned, it would be the first time in decadesthat a major American financial institution has done so.
Last year, when Swiss bank Credit Suisse AG pleaded guilty in the United States to helping wealthy Americansevade taxes, it became largest institution in over 20 years toadmit criminal wrongdoing. It was soon followed by Frenchbanking group BNP Paribas SA. (Reporting by Karen Freifeld, Sarah N. Lynch and Soyoung Kim.Editing by Andre Grenon)