Posted By Uma Rajagopal
Posted on November 27, 2024
By Foo Yun Chee
BRUSSELS (Reuters) -HSBC on Wednesday lost its challenge against a 31.7 million euro ($33.4 million) EU cartel fine after Europe’s second top court sided with EU regulators in the long-running case.
The European Commission, which acts as the EU competition watchdog, levied the fine in 2021, saying HSBC, JPMorgan Chase and Credit Agricole took part in a cartel to rig benchmark Euribor rates in 2007.
“The General Court confirms the Commission’s amended decision against HSBC. The revised fine of 31,739,000 euros is upheld,” the Luxembourg-based tribunal said as it rejected all of HSBC’s arguments.
HSBC can appeal to the Court of Justice of the European Union, Europe’s top court.
The EU antitrust enforcer had originally handed out a fine of 33.6 million euros to HSBC in its 2016 decision but the General Court in 2019 scrapped the penalty saying regulators had failed to provide sufficient reasoning.
The Commission subsequently issued a second ruling in 2021 by trimming the fine.
The Commission has said the cartel of seven banks colluded between September 2005 and May 2008 to try to rig Euribor interest rates – a benchmark for rates on financial products such as interest rate swaps, futures, saving accounts and mortgages – to increase profit or reduce risk.
Deutsche Bank, RBS and Societe Generale admitted wrongdoing in return for much lower fines, while Barclays blew the whistle on the cartel and escaped a penalty.
EU, U.S. and British regulators have fined banks billions of euros for manipulating benchmark interest rates and the foreign exchange market.
The case is T-561/21 HSBC Holdings and Others v Commission.
(Reporting by Foo Yun Chee; editing by Louise Heavens and Jason Neely)
