NatWest Spoofing Case Breaches Non-Prosecution Deal, U.S. Says

U.S. prosecutors have told NatWest Group Plc that it is in breach of a non-prosecution agreement as a result of allegedly illicit transactions carried out by a group of former traders.

Federal prosecutors in Connecticut told NatWest in an Aug. 30 letter that it had “materially breached” the terms of a 2017 accord that saw the lender pay $44 million in penalties because of alleged “spoofing” trades that are now under investigation, according to a previously unreported filing.

The breach could expose the Edinburgh-based bank’s U.S. trading arm -- NatWest Markets Securities Inc. -- to criminal prosecution and other ...