Six banks to be fined over rate rigging

Pointing The Finger

EU antitrust regulators are set to fine six global banks including Deutsche Bank, JPMorgan and HSBC for suspected rigging of benchmark euro zone interest rates, a person familiar with the matter said on Tuesday.

Reuters reports that the penalties, which will also target Royal Bank of Scotland, Credit Agricole and Societe Generale, represent the first punishment meted out by Brussels in a global probe and represent another costly payout for an industry struggling to put past misdeeds behind it.

The move comes two years after the European Commission, the EU's antitrust authority, raided a number of banks for suspected fixing of Euribor, a benchmark used as the basis for pricing $338tril worth of financial contracts, from Spanish mortgages to complex derivatives.

Barclays, which alerted the European Commission to the suspected wrongdoing, will not be fined, the source said.

The penalties only relate to alleged manipulation of Euribor. Another group of banks suspected of rigging the London interbank offered rate (Libor) could be fined next month, when the Euribor penalties are announced, the source said.

Some of the banks had agreed to settle with the Commission in exchange for a 10% reduction in their fines, the source added.

To access the complete Reuters article hit the link below:

Exclusive: EU to fine Deutsche, JPMorgan and others in rate probe - source

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