EU fines top banks for rate manipulation

The European Commission on Wednesday said it fined three top banks -- JPMorgan, HSBC, Credit Agricole -- a total of 485 million euros (521 million U.S. dollars) for rigging the Euro Interbank Offered Rate (Euribor).

An official investigation found the three banks were among seven to have formed a cartel between September 2005 and May 2008.

The Commission said the banks were in regular contact through corporate chat-rooms or instant messaging services.

"The traders' aim was to distort the normal course of pricing components for euro interest rate derivatives," it said in a statement.

This means that the seven banks colluded instead of competing with each other on the euro derivatives market, it added.

JPMorgan was fined 337 million euros and Credit Agricole 114 million euros for its five-month involvement in the conspiracy. HSBC was fined 33 million euros for its one-month participation.

"A sound and competitive financial sector is essential for investment and growth. Banks have to respect EU competition rules just like any other company operating in the single market," Margrethe Vestager, commissioner in charge of competition policy, said during a press briefing.

The Euribor benchmark interest rate is meant to reflect the cost of inter-bank lending in euros and is based on individual quotes submitted daily by a panel of banks to a calculation agent. Enditem