British and American banks found guilty of manipulating the foreign exchange markets could face legal challenges and the prospect of paying hundreds of millions of dollars to compensate investors in Britain and continental Europe who lost money from the fraud.
Banks that could be hit by investor lawsuits include Barclays, Royal Bank of Scotland and HSBC.
In June Citigroup agreed to pay $394 million to US investors in a settlement secured by Scott+Scott, an American law firm. This year the firm secured a settlement from JP Morgan for $99.5 million, from UBS for $135 million and from Bank of America for $180 million.
These settlements applied only to investors in the United States, however, and Smith & Smith is approaching investors about the possibility of launching claims in Britain.
David Scott, managing partner of Scott+Scott, said: “To date every regulator around the world has found the banks guilty of manipulating forex rates. This has lost clients billions of dollars.
“We hare already being approached by investors and funds in Europe to help assess their losses.”