BRUSSELS--A group of eight financial institutions, including
J.P. Morgan Chase & Co. (JPM), Societe Generale SA (GLE.FR) and
Deutsche Bank AG (DB), were fined a record-breaking EUR1.71 billion
($2.32 billion) by European Union regulators Wednesday for
collusion in fixing key benchmark rates.
Royal Bank of Scotland Group PLC (RBS.LN), U.S. giant Citigroup
Inc. (C) and broker RP Martin were also fined by the European
Commission in the latest chapter of the rate-rigging scandal that
has shaken the financial sector.
The EU's antitrust watchdog said the institutions were involved
in illegal cartels either in the yen Libor rate or its euro-area
counterpart, known as Euribor, and some were involved in
manipulating both benchmarks. The rates are used to price trillions
of dollars in assets around the world from derivatives to
mortgages.
The highest fine in the Euribor case was handed down to Deutsche
Bank, at EUR466 million, while France's Societe Generale was fined
EUR446 million. In the yen Libor probe, RBS was fined EUR260
million, Deutsche Bank EUR259 million and JPMorgan EUR79.9
million.
The U.K.'s Barclays PLC (BCS) avoided a fine for Euribor
manipulation while Swiss lender UBS AG (UBS) won't be penalized in
the yen Libor probe because they blew the whistle on the illegal
practices and cooperated in the investigation, though both admit
wrongdoing. Whistleblowers can win immunity in cartel cases or see
their fines reduced under EU rules designed to encourage corporate
wrongdoers to self-report collusion.
JPMorgan, HSBC Holdings PLC (HSBC) and Credit Agricole SA
(ACA.FR) have been involved in the talks, but refused to settle the
Euribor settlement and now face formal proceedings that could pave
the way for large fines at a later stage. ICAP PLC (IAP.LN), an
interdealer broker, wasn't part of the joint settlement.
Write to Vanessa Mock at vanessa.mock@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires