The European Commission has fined eight international financial institutions a total of 1.71 Billion Euro for participating in illegal cartels in markets for financial derivatives covering the European Economic Area(EEA). Four of these institutions participated in a cartel relating to interest rate derivatives denominated in the Euro currency.
Six of them participated in one or more bilateral cartels relating to interest rate derivatives denominated in Japanese Yen.
Germany's Deutsche Bank got the stiffest penalty of a total fine of 725 million Euros, followed by Societe General of France with 446 million Euros and Britain's Royal Bank of Scotland with 391 million Euros.
The U.S. lender JP Morgan was fined 79,897,000 million Euros and Citigroup 70,020,000 million Euros.
The British broker firm RP Martin was hit with penalties of 247,000 Euros.
The six banks ad been found guilty of manipulating a total of three interest rate benchmarks, including the London Interbank Offered Rate(LIBOR) as well as its equivalent in Japan and Europe. Financial authorities around the globe have so fare handed down a total of 3.7 billion Dollars in fines to UBS, RBS, Barclays, Rabobank and broker ICAP .
UBS blew the whistle on the Libor and Tibor cases and will not face fines as a result;
Barclays will not face fines in the Euribor case because it alerted the EU Commission to the offence.