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| Banks fined €1bn by EU for currency rigging | |
| (32 minutes later) | |
| Five banks have been fined €1.07bn (£935m) by the European Commission after traders clubbed together to rig the foreign exchange market. | |
| Four banks in the "Banana Split" cartel - Barclays, RBS, Citigroup and JP Morgan - were fined €811m in all. | Four banks in the "Banana Split" cartel - Barclays, RBS, Citigroup and JP Morgan - were fined €811m in all. |
| Another three banks in the "Essex Express" cartel - Barclays, RBS and MUFG - were fined €258m. | Another three banks in the "Essex Express" cartel - Barclays, RBS and MUFG - were fined €258m. |
| A sixth bank, UBS, was excused financial penalties for revealing the cartels' existence. | A sixth bank, UBS, was excused financial penalties for revealing the cartels' existence. |
| The European Commission said the market-rigging took place from 2007 to 2013. | The European Commission said the market-rigging took place from 2007 to 2013. |
| The Commission's investigation, which began in September 2013, revealed that some individual foreign exchange traders, using online chatrooms, exchanged trading plans and occasionally co-ordinated their trading strategies. | |
| Competition Commissioner Margrethe Vestager said the banks' behaviour "undermined the integrity of the sector at the expense of the European economy and consumers". | Competition Commissioner Margrethe Vestager said the banks' behaviour "undermined the integrity of the sector at the expense of the European economy and consumers". |
| RBS said its €249m share of the fines was "fully covered by existing provisions". Barclays also said it had set aside money to cover the fine. | |
| Similar fines for manipulating the currency markets were imposed in 2014 by UK, US and Swiss regulators. | Similar fines for manipulating the currency markets were imposed in 2014 by UK, US and Swiss regulators. |
| Circles of trust | Circles of trust |
| "Most of the traders participating in the chatrooms knew each other on a personal basis," said the Commission. | "Most of the traders participating in the chatrooms knew each other on a personal basis," said the Commission. |
| "For example, one chatroom was called Essex Express 'n the Jimmy because all the traders but 'James' lived in Essex and met on a train to London. | "For example, one chatroom was called Essex Express 'n the Jimmy because all the traders but 'James' lived in Essex and met on a train to London. |
| "Some of the traders created the chatrooms and then invited one another to join, based on their trading activities and personal affinities, creating closed circles of trust." | "Some of the traders created the chatrooms and then invited one another to join, based on their trading activities and personal affinities, creating closed circles of trust." |
| Other chatrooms used included Semi Grumpy Old Men, Two and a Half Men and Only Marge. | |
| Information that the traders exchanged related to: | Information that the traders exchanged related to: |
| Their chats "enabled them to make informed market decisions on whether to sell or buy the currencies they had in their portfolios and when", the Commission said. | Their chats "enabled them to make informed market decisions on whether to sell or buy the currencies they had in their portfolios and when", the Commission said. |