HSBC, JP Morgan and Crdit Agricole fined 485m by EU

[nitpicker]

https://www.theguardian.com/business/2016/dec/07/hsbc-jpmorgan-credit-agricole-fined-eu-euribor

HSBC, JP Morgan and Crédit Agricole fined €485m by EU

Three banks colluded to manipulate Euribor euro interest rate derivatives, say competition authorities

Jill Treanor
Wednesday 7 December 2016 10.22 GMT


A five-year investigation by competition authorities in Brussels into rigging of interest rates drew to a close on Wednesday when three major banks – including HSBC – were fined €485m (£412m) for colluding to manipulate a crucial benchmark rate. The three banks, which also included JP Morgan Chase and Crédit Agricole, did not agree to an earlier settlement involving a seven-bank cartel over the setting of the interest rate known as Euribor. All three deny wrongdoing.

JP Morgan was fined €337m, HSBC €33m and Crédit Agricole €114m. The levels were based on the time they participated in the cartel and the value of products involved.

Margrethe Vestager, the EU competition commissioner, said: “A sound and competitive financial sector is essential for investment and growth. Banks have to respect EU competition rules just like any other company operating in the single market.”
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Vestager said the commission had found “chats” between traders congratulating themselves on setting the rate to levels that suited their means in a cartel which operated between September 2005 and May 2008. She described it as “a closed community with a very free language”. Financial regulators have previously published electronic correspondence with traders using colourful language as they encouraged each other to move interest rates.

Euribor is the eurozone’s version of Libor – the London interbank offered rate, which is ultimately used to value a range of financial products ranging from interest rates swaps between companies to mortgage products for households.
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