EU: Banks determined to fight Euribor decision

HSBC is planning to take on the EU after being named and shamed as one of three major banks fined $485 million for rigging financial benchmarks. According to the EU, HSBC, Credit Agricole, and JP Morgan worked together to manipulate the Euribor interest rate between 2005 and 2008.

HSBC was fined $33.6 million over the matter, with JP Morgan charged $337.2 million and Credit Agricole $114.7 million. Traders at all three banks, claims the EU, used chatrooms and instant messaging to distort to “distort the normal course of pricing components for euro interest rate derivatives” by telling each other their desired of intended submissions.

HSBC has said that it is reviewing the announcement from Brussels and is looking into the legal options available to it. “The European Commission’s decision relates to allegations of Euribor manipulation and related purported conduct during the course of one month in early 2007,” an HSBC spokesman says. “We believe we did not participate in an anti-competitive cartel.”

Both Credit Agricole and JP Morgan have released similar statements, announcing their innocence and revealing intentions to appeal the EU decision.

Full Content: IBS Intelligence

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