U.S. scrutiny of Barclays and UBS widens forex trading probe: FT

Sun Feb 8, 2015 2:12pm EST
 
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(Reuters) - The U.S. Department of Justice is examining currency-linked investments offered by Barclays (BARC.L: Quote) and UBS UBSG.VX, the Financial Times reported on Sunday.

The agency is looking into whether the two banks sold so-called structured products without disclosing the profit they were making from currency trades used to generate the products' returns, according to the FT report, which cited people familiar with the investigation. (on.ft.com/1usxaKT)

The Department of Justice is also investigating other banks over allegations of inadequate profit disclosure to clients and counterparties involved in currency deals, the FT reported.

The Department of Justice, UBS and Barclays declined to comment for the article.

(Reporting By Jessica Toonkel; Editing by Alan Crosby)

 
A branch of Barclays bank is seen in central London in this photograph dated October 22, 2014.  REUTERS/Toby Melville