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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.
Comments (1)
  • stoj
    , contributor
    Comments (438) | 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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