简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The European Commission has slapped a total fine of €344 million (around $390 million) on four banks
FX Cartel: EU Antitrust Agency Fines Four Banks $390 Million
UBS escaped the heavy penalty by being the whistleblower.
The European Commission has slapped a total fine of €344 million (around $390 million) on four banks, including UBS, Barclays, NatWest (previously RBS), HSBC and Credit Suisse, for their involvement in a forex cartel, the EU antitrust regulator announced on Thursday.
The hefty penalty came as the banks agreed to settle the case. The banks discussed and shared sensitive information and trading plans in a chatroom named ‘Sterling Lads’ for spot trading with G-10 currencies.
HSBC faces the largest penalty at €174.3 million, while Barclays has to pay €54.3 million. NatWest, which rebranded from RBS last year, is facing €32.5 million in fines, whereas Credit Suisse should cough up a total of €83 million.
However, UBS avoided the penalty with ‘full immunity’ as it blew the whistle on the scandal.
Barclays, RBS and HSBC received a 10 percent discount on the original penalty amount as they admitted their involvement with the forex cartel, but Credit Suisse did not receive any reduction as it did not cooperate with the authorities in the investigation.
Cracking Down on Financial Cartels
“Our cartel decisions to fine UBS, Barclays, RBS, HSBC and Credit Suisse send a clear message that the Commission remains committed to ensure a sound and competitive financial sector that is essential for investment and growth,” said Margrethe Vestager, Europes Competition Chief.
“Foreign exchange spot trading activities are one of the largest financial markets in the world. The collusive behaviour of the five banks undermined the integrity of the financial sector at the expense of the European economy and consumers.”
Furthermore, she highlighted that this was the sixth cartel investigation by the European regulators since 2013.
NatWest said in a statement: “We are pleased to have reached this settlement regarding serious misconduct that took place in a single chatroom, and that involved a former employee of the bank, around a decade ago.”
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.