Four EU banks fined 39 390 million for forming foreign exchange trading cartels

Tawai on HSBC, Credit Suisse, RBS and Barclays

UBS exposes cartel, acquitted: HSBC fined 200 million

BRUSSELS: The European Union (EU) has fined four banks a total of 39 390 million for forming a foreign exchange trading cartel, the European Union (EU) said in a statement. The fine was imposed for collusion in a foreign exchange spot trading cartel. Due to the formation of cartels, these banks had to face less risk in currency deals.

HSBC has been hit with a maximum fine of 20 200 million. Credit Suisse, RBS and Brackless have received lower fines. According to the European Commission, the EU's executive wing, UBS has been exempted from fines for exposing the cartel.

Margaret Vestager, vice-president of the commission, said the integration of the five banks had jeopardized the integrity of the financial sector at the expense of the European economy. The commission further said that various foreign exchange spot traders had exchanged sensitive information and trading plans.

The commission said in a statement that the banks sometimes coordinated trading strategies through an online professional chart room called Sterling Leds. UBS has been acquitted of the 10.6 million fine for exposing the cartel. Barclays, RBS and HSBC have been fined for cooperating with the European Union in the investigation.