24 C
London
Monday, August 10, 2020

Five banks fined €1.07bn over foreign exchange cartel

Must read

Riot declared as fire burns in Portland police union offices

Authorities in Portland, Oregon, have declared a riot after a fire inside a police union building. Demonstrations are continuing in the US city that had...

Storm on Greek island kills five, including baby

Five people, including an elderly couple and an eight-month-old baby, have been found dead after a storm hit the Greek island of Evia. Two others...

More than 500 migrants cross English Channel to Britain in three days

More than 500 migrants have crossed the English Channel to the UK in just three days. Dozens more migrants braved the dangerous crossing to Britain...

Boris Johnson ‘would close shops and pubs ahead of schools’

UK prime minister Boris Johnson has spoken of “a moral duty” to get all children back in class amid indications he would force pubs,...

Five banks handed a €1.07bn fine for taking part in a foreign exchange spot-trading cartel, the European Commission has announced.

Barclays and Royal Bank of Scotland (RBS), Citigroup, JP Morgan and MUFG were fined by the EU antitrust group in two settlements.

Barclays, RBS, JPMorgan and Citigroup were hit with a combined fine of €811.2m in the first settlement.

The second settlement saw a €257.7m fine slapped on Barclays, RBS and MUFG Bank (formerly Bank of Tokyo-Mitsubishi).

The commission said the banks colluded on trading strategies to rig the spot foreign exchange market for 11 currencies.

Swiss bank, UBS, was involved but not fined after it alerted the EC about the two cartels.

The investigation revealed that some individual traders in charge of foreign exchange spot trading for currencies on behalf of their associated banks exchanged sensitive information and trading plans.

It also said the traders occasionally co-ordinated trading strategies through online chatrooms.

Most of the traders involved in the chatrooms knew each other on a personal basis, with one chatroom called “Essex Express ‘n the Jimmy”, as all the traders except one lived in Essex and met on a train to London.

The first infringement ran from December 2007 to January 2013, while the second ran from December 2009 to July 2012, the commission said.

Commissioner Margrethe Vestager said: “Companies and people depend on banks to exchange money to carry out transactions in foreign countries.

“Today we have fined Barclays, the Royal Bank of Scotland, Citigroup, JPMorgan and MUFG Bank and these cartel decisions send a clear message that the commission will not tolerate collusive behaviour in any sector of the financial markets.

“The behaviour of these banks undermined the integrity of the sector at the expense of the European economy and consumers.”

- Advertisement -

More articles

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Latest article

Riot declared as fire burns in Portland police union offices

Authorities in Portland, Oregon, have declared a riot after a fire inside a police union building. Demonstrations are continuing in the US city that had...

Storm on Greek island kills five, including baby

Five people, including an elderly couple and an eight-month-old baby, have been found dead after a storm hit the Greek island of Evia. Two others...

More than 500 migrants cross English Channel to Britain in three days

More than 500 migrants have crossed the English Channel to the UK in just three days. Dozens more migrants braved the dangerous crossing to Britain...

Boris Johnson ‘would close shops and pubs ahead of schools’

UK prime minister Boris Johnson has spoken of “a moral duty” to get all children back in class amid indications he would force pubs,...

Protesters storm government buildings as fury over Beirut blast fuels violence

Public fury over this week’s massive explosion in Beirut took a new turn on Saturday as protesters stormed government institutions and clashed for hours...
%d bloggers like this: