On the basis of a leniency program by the EU Commission, UBS was completely waived a high fine.
Credit Suisse is headquartered in Zurich. Together with the…
… HSBC, the Hong Kong Shanghai Banking Corporation, who …
… Barclays Bank, headquartered in London, and the…
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HSBC received the highest fine of around 174 million euros.
Credit Suisse was given a fine of around 83 million euros.
UBS was waived the fine in its entirety.
The four banks HSBC, Credit Suisse, RBS and Barclays were punished for collusion in a foreign exchange spot trading cartel. Due to the EU Commission's leniency program in 2006, Bank UBS was completely waived a fine that would have amounted to 94 million euros, “because the company had informed the Commission about the existence of the cartels,” as stated in a communication from the EU Commission from Thursday was called. According to the information, UBS, Barclays, RBS and HSBC agreed to a comparison.
HSBC received the highest fine with around 174 million euros, Credit Suisse had to pay around 83 million euros, Barclays around 54 million euros and RBS around 32 million euros. «The foreign exchange spot market is one of the largest financial markets in the world.
By coordinating their behavior, the five banks have undermined the integrity of the financial sector at the expense of the European economy and European consumers, “said the EU Commissioner for competition policy, Margrethe Vestager, according to the announcement.
Sensitive information and trade intentions were exchanged
The investigation focused on the reported G10 currencies, which are reported to be the most liquid and most traded currencies in the world. The investigation found that “certain traders responsible for spot foreign exchange trading in G10 currencies for the account of fined banks exchanged sensitive information and trading intentions and their trading strategies from time to time through a professional online chat room called Sterling Lads coordinated “.
On the basis of this exchange, the traders“ knowing the market situation ”could have decided“ whether and when they wanted to sell or buy the currencies they held in their portfolios – as opposed to a situation in which traders acting independently of one another take the risk associated with their decisions ». This would also have enabled the dealers to determine when coordination was possible, for example by foregoing deals “so as not to impair the business of other dealers”.
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