Penalized: Six banks that worked together to manipulate currency exchange rates will pay a few billion dollars in fines to settle their involvement in the scheme. Citigroup and JPMorgan Chase are each paying an estimated $1 billion in fines to regulators in three countries, with Bank of America, UBS, Royal Bank of Scotland, and HSBC paying smaller amounts. Barclays refused to settle and other banks remain under investigation.
Bond fund manager Pimco is expected to lose a third of its funds under management over the next two years, and this could cause short-term difficulties in managing its funds. Customers worry about Pimco after two years of lackluster performance followed by the unexplained exit of two top executives. Pimco saw $50 billion in outflows in October, and net redemptions may continue at half that pace even if the company faces no further hurdles in the months ahead.