EC charges banks over bond trading concerns

Thursday, 20. December 2018 14:08

Four banks suspected of being part of a bond trading cartel were notified by the European Commission on Thursday that they may have breached European Union antitrust rules, according to the Financial Times.

The EC claims that the four banks, two of which are Credit Suisse and Deutsche Bank, exchanged financially-sensitive data and coordinated prices for supra-sovereign, sovereign and agency bonds denominated in US dollars, thereby distorting competition in the secondary market. They were sent statements of objections, which are charge sheets containing evidence that the EC built its case on. The allegations cover a period of six years from 2009 to 2015 and have not been proven yet.

Credit Suisse confirmed that it is cooperating with the investigation while Deutsche Bank stated that it had "proactively cooperated" with the EC and "did not expect a financial penalty." The banks may be fined up to 10% of their annual worldwide turnover if the EC proves the allegations.

Related Links: Deutsche Bank AGCredit Suisse Group
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Breaking the News / DZ