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| Version 1 | Version 2 |
|---|---|
| EU fines banks over rate-rigging | EU fines banks over rate-rigging |
| (35 minutes later) | |
| The European Commission has fined eight banks - including RBS - a total of 1.7bn euros (£1.4bn) for forming illegal cartels to rig interest rates. | The European Commission has fined eight banks - including RBS - a total of 1.7bn euros (£1.4bn) for forming illegal cartels to rig interest rates. |
| The cartels operated in markets for financial derivatives, which are products used to manage the risk of interest rate movements. | The cartels operated in markets for financial derivatives, which are products used to manage the risk of interest rate movements. |
| Two of the eight, Barclays and UBS, were excused their financial penalties for revealing the cartels' existence. | Two of the eight, Barclays and UBS, were excused their financial penalties for revealing the cartels' existence. |
| The Commission said it was shocking that competing banks were in collusion. | The Commission said it was shocking that competing banks were in collusion. |
| UBS and Barclays stood to pay the largest fines of 2.5bn euros and 690m euros, but avoided paying anything because they assisted the investigation. | |
| A number of banks were engaged in the rigging of interest rate products intended to reflect the cost of interbank lending in euros, while another group fixed prices for products based on the Japanese yen. | A number of banks were engaged in the rigging of interest rate products intended to reflect the cost of interbank lending in euros, while another group fixed prices for products based on the Japanese yen. |
| Some were involved in both markets and more than one cartel, including RBS, which was fined a total of 391m euros (£325m). | |
| 'Scandal' | 'Scandal' |
| Aside from RBS, Barclays and UBS, the other organisations involved were Deutsche Bank, which received the biggest fine of 725.36m euros, Societe Generale, JP Morgan, Citibank and the brokers RP Martin. | Aside from RBS, Barclays and UBS, the other organisations involved were Deutsche Bank, which received the biggest fine of 725.36m euros, Societe Generale, JP Morgan, Citibank and the brokers RP Martin. |
| Banks that have not yet settled fines but are being investigated are HSBC and Credit Agricole, as well as JPMorgan, which accepted a fine for rigging in one market but not another. | Banks that have not yet settled fines but are being investigated are HSBC and Credit Agricole, as well as JPMorgan, which accepted a fine for rigging in one market but not another. |
| Joaquin Almunia, the commission's vice-president in charge of competition policy, said: "What is shocking about the... scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other. | Joaquin Almunia, the commission's vice-president in charge of competition policy, said: "What is shocking about the... scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other. |
| "Healthy competition and transparency are crucial for financial markets to work properly, at the service of the real economy rather than the interests of a few." | "Healthy competition and transparency are crucial for financial markets to work properly, at the service of the real economy rather than the interests of a few." |
| *Barclays received full immunity for revealing the existence of the cartel | |
| *UBS received full immunity for revealing the existence of the cartels. Citigroup received full immunity for one infringement and avoided a 55m-euro fine |