EU fines HSBC, JPMorgan Chase and Crédit Agricole £415m for manipulating Euribor
Three of the world’s biggest banks were fined a total of €485 million (£415 million) on Wednesday for colluding to fix a key borrowing rate in the latest regulatory slap to the industry.
HSBC, JPMorgan Chase and Crédit Agricole broke EU anti-trust rules by rigging Euribor, the Euro Interbank Offered Rate at which banks lend to each other, investigators said. The banks swapped price sensitive information as they bidded to make highly profitable trades, a five-year investigation by the European Commission found.
Internet chats between traders were found indicating they had set rates to suit their own dealing.
JPMorgan was fined €337.2 million, HSBC €33.6 million and Crédit Agricole €114.7 million.
Margrethe Vestager, the EU’s antitrust commissioner, said: “Banks have to respect EU competition rules just like any other company operating in the single market.”
Vestager added: “A sound and competitive financial sector is essential for investment and growth.”
Four other banks — Royal Bank of Scotland, Barclays, Deutsche Bank and Société Générale — settled with the commission in 2013 for €820 million. Banks have faced similar allegations and punishments over Libor, the London equivalent.
Euribor and Libor are used to calculate interest payments for trillions-worth of financial deals, including mortgages.
The rigging of these rates is widely regarded as one of the most serious financial scandals of recent years.
ArticleEU fines three banks £415 million for manipulating EuriborBusinessEuropean UnionBanking