Big banks to contest EU derivatives charges

Nine months ago, the European Commission accused 13 banks of blocking Deutshce Boerse (DBOEY) and CME from entering the lucrative CDS business between 2006-09, but the banks, reports Reuters, are set to fight those charges at a closed-door hearing next month.

Should they lose, the banks could be subject to fines of up to 10% of their global CDS turnover - not a small amount given the size of the market.

Those charged and expected to fight: C, GS, DB, BAC, BCS, BNPQY, CS, HSBC, JPM, MS, RBS, and UBS.

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Comments (7)
  • DoowopDave
    , contributor
    Comments (253) | Send Message
    Just when the lawyers were getting worried, yet another suit for BAC. What a surprise. Why do the investors keep getting hit instead of Ken Lewis? Because the big banks is where the real money is.
    7 Apr 2014, 02:37 PM Reply Like
  • JamesChessing21
    , contributor
    Comments (133) | Send Message
    Unfortunately true...It s called extortion when Mexican bandits behave like that :::
    7 Apr 2014, 03:54 PM Reply Like
  • nicholas davout
    , contributor
    Comments (3046) | Send Message
    You really need to consider if it isn't the governments that are the bandits that are extorting money from businesses and siphoning off investors income and profits.
    I'm rooting for the banks not the bandits.
    7 Apr 2014, 04:34 PM Reply Like
  • siculus01
    , contributor
    Comments (184) | Send Message
    The Government "discovered" with the usual perverted mind some laws in the books (1800) and are redacting words for words those sentences that could be applicable into the 21 Century. They found out that the banks are like a Swiss cow. Until that cow has milk left to be squeezed out, they will continue to milk it until the cow will die. That day, could arrive soon, and after that America (with no banking system) will be another Comunist Country. Just now we work under the Sociliastic laws which eventually, soon, will be Comunism!
    7 Apr 2014, 05:54 PM Reply Like
  • deckster8
    , contributor
    Comments (59) | Send Message
    "Until that cow has milk left to be squeezed out, they will continue to milk it until the cow will die."
    This makes no sense. Maybe not a Swiss cow? A communist cow?
    7 Apr 2014, 09:57 PM Reply Like
  • credit_man
    , contributor
    Comments (180) | Send Message
    CDS is (was) a credit business both Deutsche boerse and CME have/had no clue how to manage liquidity of a credit business..
    this time i think banks are fighting back for good reasons....
    8 Apr 2014, 06:09 AM Reply Like
    , contributor
    Comments (90) | Send Message
    Boiled down, CDS contracts are put options. The banks don't want them listed because the bid/ask spreads must be crazy wide today.


    If the big banks don't like it, everyone should be for it.
    8 Apr 2014, 05:23 PM Reply Like
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