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(Adds Treasury Committee Chairman Tyrie)
LONDON, Nov 12 (Reuters) - Five of the world's biggest bankswill pay almost $3.4 billion in penalties to British, U.S. andSwiss authorities for alleged manipulation of foreign exchangerates.
Here are reactions to the fines:
GEORGE OSBORNE, UK FINANCE MINISTER:
"Today we take tough action to clean up corruption by a fewso that we have a financial system that works for everyone. It'spart of a long term plan that is fixing what went wrong inBritain's banks and our economy.
"A number of traders have been suspended or fired, and theSerious Fraud Office are conducting criminal investigations. Thebanks that employed them face big fines - and I will ensure thatthese fines are used for the wider public good."
MARTIN WHEATLEY, CHIEF EXECUTIVE OF FINANCIAL CONDUCTAUTHORITY
"The FCA does not tolerate conduct which imperils marketintegrity or the wider UK financial system.
"Today's record fines mark the gravity of the failings wefound and firms need to take responsibility for putting itright. They must make sure their traders do not game the systemto boost profits or leave the ethics of their conduct tocompliance to worry about. Senior management commitments tochange need to become a reality in every area of theirbusiness."
ANDREA LEADSOM, ECONOMIC SECRETARY TO THE TREASURY
"This behaviour by a few in the banks will quite rightlydisgust taxpayers, who were forced to bail them out during thefinancial crisis.
"The government is determined to deal with the unacceptablebehaviour we have seen in the financial markets, which is why Iwelcome the action that the Financial Conduct Authority hastaken today. It shows that the tough regulatory system that wecreated is working."
ANDREW TYRIE MP, CHAIRMAN OF UK'S TREASURY COMMITTEE, FORMERCHAIRMAN OF THE PARLIAMENTARY COMMISSION ON BANKING STANDARDS
"This appalling misconduct - of LIBOR proportions and more -appears to have taken place from 2008 until late 2013. So evenas banks were telling the Parliamentary Commission on BankingStandards that they had got to grips with past misconduct, theirFX traders were manipulating benchmarks, sharing confidentialclient information and exploiting conflicts of interest.
"The senior leadership at these banks promised theCommission that this time they really were tackling poorbehaviour. Clearly not vigorously enough. The spirit may beingwilling - particularly at the top - but the flesh remains weak.This settlement is yet more evidence that some banks may be toobig to manage. It is evidence, too, of the need to implementfully the reforms proposed by the Vickers Commission and theParliamentary Commission on Banking Standards."
MARK GARNIER, MP, MEMBER OF TREASURY COMMITTEE
"It seems to be business as usual - banks blow up, payfines, and we move on. They just seem to be inventing new waysto break the rules. Half the problem is there aren't any rules.
"There are market abuse rules in place, but they haven'tkept pace with market changes.
"The fines are meaningless. 400 million pounds or 4 billion.There's only one fine that's important and that's if they'rebeing taken out of traders' bonus pool. The individuals andthose around them have to start feeling the pinch as well, notthe banks."
JOHN MANN, MP, MEMBER OF TREASURY COMMITTEE
"It has been known for five years that this rigging of themarket has been taking place and yet it has been allowed tocontinue. What is the point of being a chairman or chiefexecutive of a large bank knowing this is going on and beingincapable of dealing with it.
"This fraudulent trading has taken place over a five-yearperiod during which time the taxpayer has had to provide massivefinancial assistance to the banking sector and we have clearlybeen taken for a fool by the bankers.
"What must happen now is that the bankers and seniormanagers are actually held accountable for this behaviour andRBS, the taxpayer-owned bank, must ensure that these fines arepaid from its bonus pool and not simply taken from its profits."
MARSHALL BAILEY, PRESIDENT, ACI FINANCIAL MARKETSASSOCIATION
"The improper behaviour that has come to light has no placein financial markets and it is crucial that lessons are learntfrom these events to ensure it does not reoccur.
"The actions of this relatively small unrepresentativeminority have damaged the reputation of the market in the eyesof the public, but this should not be seen to reflect thebroader health of the FX industry, nor should it trigger widerstructural reforms. The reality is that the FX market'sstructure is broadly effective and well designed, and plays avital role in the flow of global commerce."
JAMES KEMP, MANAGING DIRECTOR OF THE GLOBAL FINANCIALMARKETS ASSOCIATION
"Today's announcements from global regulators mark asignificant moment for the FX industry. In highlighting majorfailures of control and conduct, the FCA and other regulatorsclearly identify key areas where standards have not been met.
"While investigations are still ongoing, the settlements andthe proposed remediation programme provide a blueprint for theindustry to move forward and to implement changes to restoreconfidence in the FX market."
"A great deal of work has already been done to strengthenthe internal processes and procedures within banks, alongsideincreased training and education. The FX industry will continueto engage with regulators and supervisors to ensure the FXmarket ... works for the benefit of all its participants."
PHILIP HAMPTON, RBS CHAIRMAN
"Two clients did express some concerns and, with hindsight,I don't think we followed them up terribly fully. We didn'teliminate these things as decisively as, with hindsight, weshould have done.
"Today is a stark reminder of the importance of culture andintegrity in banking and we will rightly be judged on thestrength of our response.
"We have analysed millions of documents and are reviewingthe conduct of over 50 current and former members of tradingstaff around the world as well as dozens of supervisors andsenior management responsible and accountable for this business.
"As part of that process, we have already placed sixindividuals into a disciplinary process, three of whom arecurrently suspended, pending further investigation."
ROSS MCEWAN, RBS CHIEF EXECUTIVE
"To say I am angry about the misconduct described todaywould be an understatement. I hope you know I have zerotolerance for such failures."
BARCLAYS
The bank said it had "engaged constructively" withregulators including the FCA and the U.S. Commodity Futurestrading Commission (CFTC) and had considered a settlement fromthem "on closely similar terms" to those announced for otherbanks.
"However, after discussions with other regulators andauthorities, we have concluded that it is in the interests ofthe company to seek a more general coordinated settlement.
"We will continue to engage with these authorities,including the FCA and CFTC, with the objective of bringing thisto resolution in due course."
HSBC :
"HSBC does not tolerate improper conduct and will takewhatever action is appropriate."
UBS :
"UBS was the first bank to self-report potential misconduct and cooperate fully with authorities in their review of FX andrelated markets. The firm took appropriate disciplinary actionagainst employees involved in the matter.
"In addition, and in line with its findings and regulatoryrequirements, UBS has introduced significant enhancements to thecontrol framework of its FX business and the entire firm.
"UBS continues to cooperate with ongoing FX and relatedinvestigations, which include investigations of individualsinvolved."
JPMORGAN
"The trader conduct described in today's settlements isunacceptable.
"In addition to making significant improvements to oursystems and controls, we have spent a lot of time reinforcingthe high standards of conduct expected of our people. Althoughthe settlements acknowledge our progress, further training andenhancements are ongoing and will remain a priority."
CITIGROUP
"Citi acted quickly upon becoming aware of issues in ourforeign exchange business and we have already made changes toour systems, controls and monitoring processes to better guardagainst improper behaviour." (Compiled by Matt Scuffham and Steve Slater; Editing by ClareHutchison and Freya Berry)
