EU antitrust unit accuses JPMorgan, two others over interbank rate manipulation

Three major banks has recently been lodged with allegations of running a rate-rigging cartel by the antitrust arm of the European Union. JPMorgan Chase & Co, HSBC Holdings Plc and Credit Agricole SA each received antitrust complaints that the trio had colluded to manipulate the European interbank lending rates. Bloomberg said that the so-called statement of objections is expected to be done as part of the EU enforcement process following the lenders' dropping out of settlement talks that happened last year.

In an emailed statement, the European Commission said, "(The European Commission) has concerns that the three banks may have taken part in a collusive scheme which aimed at distorting the normal course of pricing components for euro interest rate derivatives."

The news agency said efforts of the regulator to get a clean sweep of settlements regarding rate manipulation was ruined because of the banks' dropouts. Societe Generale SA, who had earlier agreed in December to pay along with six other financial firms a combined 1.7 billion euros ($2.3 billion) in fines, had filed an appeal regarding its penalty in the courts.

JPMorgan and HSBC said in separate statements that they will be defending themselves against the allegations lodged by the EU.

The New York-based bank said, "JPMorgan Chase has cooperated fully with the European Commission throughout its investigation. The company believes that the statement of objections is without merit."

Credit Agricole, on the other hand, indicated in an emailed response to the EU complaint that it had yet to receive the documents.

In Brussels today at a press conference, EU antitrust chief Joaquin Almunia said that the refusal to settle has cost all three banks the chance to avail a 10% discount on the fines. Almunia fell short on saying whether the fines the three banks will be facing could be larger than the banks who had opted to strike a deal with the commission.

Tags

JPMorgan Chase & Co, HSBC Holdings Plc, Credit Agricole SA, Euribor rigging scandal

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