European Commission Imposes €344 Million Fine on Five Bank Giants

The European Commission announced on Thursday that it has fined UBS, Barclays, RBS, HSBC and Credit Suisse €344 million for participating in a Foreign Exchange spot trading cartel.

More specifically, the commission has adopted a decision imposing a total fine of €261 million on the four banks that decided to settle the case, namely UBS, Barclays, RBS and HSBC. The commission has also fined Credit Suisse €83 million under the ordinary procedure.

The commission's investigation revealed that some traders in charge of the Forex spot trading of G10 currencies, acting on behalf of the fined banks, exchanged sensitive information and trading plans, and occasionally coordinated their trading strategies through an online professional chatroom called Sterling Lads.

UBS received full immunity for revealing the existence of the cartels, thereby avoiding the aggregate fine. 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.

"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, Europe's 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,"Vestager added.