Brussels, 20/05/2014 (Agence Europe) - The preliminary conclusions of an investigation into three banks, Crédit Agricole, HSBC and JPMorgan, find that they were involved in rate-fixing for derivatives in euro.
The European Commission has sent them a statement of objections (which does not prejudge the final outcome of the investigation). It has told the banks of its suspicions and is now awaiting a reply before taking the final decision.
Derivatives denominated in euro are used by banks and companies to hedge exchange rate differences and play a key role in the global economy. Their value is calculated using the Euribor inter-bank exchange rate.
On 4 December 2013, several banks were fined a total of more than €1 billion for their involvement in illegal price-fixing on the derivatives markets. Barclays was given immunity for revealing the existence of the cartel, and Deutsche Bank, RBS and Société Générale had their fines reduced for cooperating with the Commission and agreeing to arrange an out-of-court settlement (see EUROPE 10977).
Crédit Agricole, HSBC and JPMorgan refused to reach an arrangement and EU Competition Commissioner Joaquin Almunia refuses to comment on the content and timing of the final decision. He said the banks now had the opportunity to defend themselves. They risk being fined 10% of their global annual turnover.
Almunia announced that the Commission would be sending its preliminary view to broker ICAP over the next few days over the investigation into rate-fixing on the Libor Yen benchmark.
The Commission is also looking at the Forex currency market benchmark, derivatives in Swiss francs and possible rate-fixing on the oil and biofuel markets. It said last week that it had recently carried out spot checks of companies in two member states in connection with the oil and biofuel investigations. (EL)