Five banks have been issued fines by the Financial Conduct Authority over the foreign exchange (Forex) rigging scandal for "failing to control business practices".
The penalties are as follows:
- HSBC - £216,363,000
- Citibank - £225,575,000
- JPMorgan Chase Bank £222,166,000
- Royal Bank of Scotland £217,000,000
- UBS - £233,814,000
Barclays has not been named as one of the banks taking part in the FCA settlement.
Five banks have been fined a total of £1.1 billion over the foreign exchange (Forex) rigging scandal.
The Financial Conduct Authority said it was imposing the fines for "failing to control business practices in their G10 spot foreign exchange".
Six banking firms are braced for heavy fines over the foreign exchange (Forex) rigging scandal.
HSBC, Royal Bank of Scotland, Barclays, Citigroup, UBS and JP Morgan have all set aside money to pay whatever penalty the Financial Conduct Authority deems necessary.
ITV News Economics Editor Joel Hills explains:
The City regulator looks set to impose more than £1 billion in penalties on banks caught up in the foreign exchange (Forex) rigging scandal.
Six firms are said to have been in talks with the Financial Conduct Authority to reach a settlement over the alleged misconduct relating to the £3 trillion-a-day market.
Reports suggest each bank could face a penalty of between £225 million and £250 million, adding up to around £1.4 billion in total.
This would dwarf the £532 million in penalties imposed by the regulator on banks and City brokers over the previous big regulatory scandal involving the manipulation of the interbank lending rate, Libor.
Business Secretary Vince Cable has welcomed the launch of an inquiry into the dominance of major banks in the UK.
Mr Cable said Britain needed a "more competitive and effective banking market" that gives consumers more choice away from the big banks.
Business leaders also welcomed the CMA's announcement which "put business banking under the microscope".
John Longworth, director general of the British Chambers of Commerce, said Britain's "dysfunctional banking sector" which "impeded the growth prospects" of companies needed to be reviewed.
An in-depth competition investigation is to take place into the market for personal and business accounts.
The Competition and Markets Authority (CMA) said it was concerned over the low levels of customers switching amid the "limited transparency and difficulties" in making comparisons between banks.
It said there had been "very little movement" in the market shares of the four largest banks, which are Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland (RBS).
The CMA also said it would investigate the continuing barriers of entry and expansion in the sector, which "limit the ability of smaller and newer providers to develop their businesses".
HSBC has put aside £236 million to cover a regulatory investigation into the rigging of foreign exchange (forex) markets, the bank has revealed.
It means the total set aside by the UK major banks so far to more than £1 billion after Barclays and Royal Bank of Scotland said last week that they were putting aside £500 million and £400 million respectively.
HSBC has also added £438.9 million to its bill for customer redress in the UK, including for the mis-selling of payment protection insurance (PPI).
The company's reported profits for the three months to September 30 were 2% higher at £2.88 billion.
Scotland's First Minister Alex Salmond has accused the UK Government of "scaremongering" over the possible flight of businesses to England in the event of a Yes vote.
He told BBC Radio Scotland that a source "within the Treasury" had leaked information about RBS and other banks making contingency plans to move operations south.
He said the official announcements later issued by the banks "makes clear there's no impact on operations or jobs".
He also told reporters there would be an "inevitable investigation" into the leaking of "market sensitive information".
Standard Life, which has its headquarters in Edinburgh, has announced contingency plans to relocate parts of its business to England in the event of a Yes vote.
In view of the uncertainty around Scotland's constitutional future, we have put in place precautionary measures which would help enable us to provide customers with continuity. This includes planning for new regulated companies in England to which we could transfer parts of our business if there was a need to do so.
This transfer of our business could potentially include pensions, investments and other long-term savings held by UK customers...
We will continue to serve our customers in Scotland and will consider what additional measures we may need to take on their behalf as a consequence of constitutional change once further clarity and certainty is received.
New rules which could mean rule-breaking bankers having their bonuses taken away are a 'big positive step', said Business Secretary Vince Cable.
The regulations will make bankers operate 'more responsibly' he said.
" I don't think anyone would have a quarrel with this. We have suffered enormously from the collapse of the banking system. We need to have a system of penalties in place to make sure this doesn't happen again," Dr Cable added.