EU to fine banks €1.7B for manipulating interest rates


The EU Commission will reportedly fine a group of leading multinational banks €1.7B for rigging inter-bank interest rates in what would be the largest antitrust penalty that the commission has ever levied.

The banks to be fined include all the old favorites - Citigroup (C), Deutsche Bank (DB), Royal Bank of Scotland (RBS), JPMorgan (JPM) and Barclays (BCS), as well as Societe Generale (SCGLF).

The banks have admitted liability in return for a 10% reduction in their punishment.

However, HSBC (HSBC) and Credit Agricole (CRARF) are contesting the proposed sanctions from the EU and are set to be formally charged today.

UBS (UBS), which paid $1.5B to U.S. and U.K. authorities for similar sins, is escaping a penalty, as it alerted the EU to the Libor and Tibor cases.

EU Competition Commissioner Joaquin Almunia is due to announce the penalties at a press conference at 5:30 ET.

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Comments (1)
  • stoj
    , contributor
    Comments (754) | Send Message
     
    penalties ??? As much as EU fines the banks, the EU will have to insert even more money, through QE-like programs or write offs in bad investments and loans. Remember, the massive sovereign write offs in 2011-2012 were in effect, a QE program, that was totally uneven and sporadic, due to a panic, that wasn't even recognized afterwards by the central EU, as a panic
    4 Dec 2013, 05:49 AM Reply Like
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