LONDON (Alliance News) - Currency-linked investments marketed by Barclays PLC and UBS AG are under the scanner of the US Department of Justice, the Finacial Times reported Sunday.
The scrutiny is an indication that the broad global investigation into the foreign exchange market may become more difficult for lenders.
The DoJ is examining whether the two banks sold the structured products without disclosing the profit they were making from currency trades used to generate the products' returns, the FT said, quoting people familiar with the probe. These products were sold to sophisticated investors, including several Swiss hedge funds.
The regulator is probing other banks over charges of inadequate profit disclosure to clients and counterparties involved in currency deals, the report added.
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Barclays (BARC)