EU fines JPMorgan, HSBC and Credit Agricole $520mn for rate manipulation
After a five-year investigation, the European Commission has fined three major banks €485 million for rigging the crucial Euro Interbank Offered Rate (Euribor).
The Commission said on Wednesday they were part of a seven bank cartel that colluded on setting the euro interest rate instead of competing with each other between September 2005 and May 2008.
JPMorgan was fined €337 million and Credit Agricole €114 million for five-month involvement in the conspiracy. HSBC got a €33 million penalty for its one-month participation.
The trio had refused to join a multi-bank settlement with four other lenders while denying any wrongdoing. By refusing to settle with the Commission, they missed the chance of a 10 percent discount on any fines.
The other four banks – Royal Bank of Scotland, Barclays, Deutsche Bank and Societe Generale – settled with the Commission in 2013 for €820 million.
“We have cooperated fully with the European Commission throughout its five-year investigation. We did not engage in any wrongdoing with respect to the Euribor benchmark,” JPMorgan said, adding the bank will continue “to vigorously defend our position against these allegations, including through possible appeals to the European courts.”
HSBC and Credit Agricole also said they did not participate in any anti-competitive cartel.
The EU’s Antitrust Commissioner Margrethe Vestager said the Commission had found “chats” between traders congratulating themselves on setting the rate to levels that suited their means.
yes this is enterprise corruption from the banks..and yes..520 million is toilet paper to how much they profited from it..
dont trust your bank..there is NO reason to..