Banks fined record £1.4bn over rate rigging scandal
Wednesday 04 December 2013
The European Commission has fined five international banks, including Royal Bank of Scotland, and a broker a record 1.7 billion euros (£1.4 billion) for rigging crucial interest rate benchmarks.
Competition commissioner Joaquin Almunia said: “What is shocking about the Libor and Euribor scandals is not only the manipulation of the benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between the banks which are supposed to be competing with each other.”
Almunia, pictured, added: “If you take the opportunity to see the conversation between these cartel traders you will be appalled.”
RBS, the taxpayer-controlled bank, has been fined 391 million euros. That is on top of the £390 million it paid to UK and US regulators earlier this year.
Barclays, which was fined £290 million last year and saw the resignations of its chief executive Bob Diamond and chairman Marcus Agius over the Libor-rigging scandal, escaped a European fine because, along with UBS, it acted as a whistleblower to the commission.
If it had not done so it would have been fined 690 million euros and UBS 2.5 billion euros. The Swiss bank has already paid the equivalent of $1.5 billion (£915 million) in fines of rate rigging.
Deutsche Bank landed the largest EC fine of 725 million euros. France’s Société Générale was fined 446 million euros. JPMorgan has to pay 80 million euros, Citigroup 70 million euros and London broker RP Martin 247,000 euros. Today’s fines take the total imposed by UK, US and European regulators to $6 billion.
Almunia said: “Today’s decision sends a clear message that the commission is determined to fight and sanction these cartels in the financial sector. Healthy competition and transparency are crucial for financial markets to work properly, at the service of the real economy rather than the interests of a few.”
The benchmarks involved were the Yen London interbank rate and Euribor. These rates are used to price assets running into hundreds of trillions of dollars ranging from derivatives to mortgages.
Three banks — HSBC, Credit Agricole and JPMorgan — rejected the commission’s offer to settle early on the Euribor case and London broker ICAP on the Yen case. All face formal antitrust charges which could lead to larger fines.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 2 Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
- 3 Belgium fan Axelle Despiegelaere lands L'Oreal campaign after World Cup viral photo
- 4 Britney Spears sings 'Alien' without Auto-Tune in embarrassing leaked audio clip
- 5 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Mick Jagger denies being World Cup curse and reason for Brazil’s embarrassing defeat
Israel-Gaza crisis: ‘We just want it to end… We don’t deserve to live like this’
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...
£12 - £15 per hour: Cameron Kennedy Recruitment: Excellent opportunity to join...