EU Fines 5 Banks 1.2 Billion

FIVE GLOBAL BANKS HAVE BEEN SLAPPED WITH A $1.2 BILLION FINE IN EUROPE FOR RUNNING CARTELS THAT COORDINATED CURRENCY TRADING

(CNN) – Five global banks have been hit with a collective $1.2 billion fine in Europe for running cartels that coordinated currency trading.

The European Commission announced Thursday that it concluded an investigation into collusion in the foreign exchange market. And banks including JPMorgan Chase, CitiGroup, Barclays, RBS, and Japan’s MUFG would be required to pay penalties.

Citi and RBS were hit the hardest; they are required to pay $348 million and $249 million, respectively.

UBS,  a whistleblower in the case was not required to pay a fine.

The commission alleges that traders exchanged sensitive information and coordinated activities in chatrooms on Bloomberg terminals; giving the traders access to privileged information so they’d know the best currencies to buy and when would be most profitable to buy them.

JPMorgan, Citi, Barclays and RBS settled a similar inquiry with the U.S. Department of Justice in 2015.

Ultimately, in that case, the banks agreed to pay fines of more than $2.5 billion.

Categories: World News