EU Fines HSBC, Credit Suisse & Others Over FX Cartel

EU antitrust regulators on Thursday fined Barclays, Credit Suisse, HSBC and NatWest 344 million euros ($390 million) for foreign exchange market rigging, reported Reuters.

UBS avoided a 94 million euro fine by alerting the European Commission to the cartel, which was set up via a chatroom known as “Sterling Lads”.

HSBC received the largest fine at 174.3 million euros, followed by Credit Suisse at 83.3 million euros, Barclays at 54.3 million and RBS at 32.5 million.

Barclays, HSBC and RBS – known as NatWest since a rebranding – admitted wrongdoing in return for a reduced penalty. NatWest said the misconduct took place about a decade ago in a single chatroom, involved a former employee and that its culture and controls had since fundamentally changed.

UBS said it had been the first bank to disclose potential misconduct and was pleased the matter was resolved. Some of the world’s biggest banks have been fined more than $11 billion collectively by U.S. and European regulators since allegations first surfaced around 2013 that dealers were rigging the world’s largest financial market. Dozens of traders were suspended or fired.

The latest investigation focused on foreign exchange (forex) spot trading of G10 currencies, the most liquid and traded currencies in the world, which include the US dollar, pound and euro.

Traders exchanged sensitive information and trading plans and sometimes coordinated strategies through the online chatroom, the Co

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