JP Morgan Chase , HSBC Holdings and Credit Agricole, after months of delay, will answer a European Union antitrust complaint alleging they conspired to rig Euribor rates, according to sources.
The initial four-week deadline set on May 20th was extended amid concerns over the fairness of the EU’s handling of the probe, said the people who asked not to be named because the issue is private. The companies’ responses are expected today, the sources said.
The EU's investigation into Euribor manipulation has been strained since the three banks refused to join four other lenders including Deutsche Bank who agreed to pay a total of more than 1 billion euros ($1.24 billion) to settle in December.
Credit Agricole has complained to the EU’s ombudsman, saying the EU has prejudged the outcome of the investigation. Banks will continue to seek clarity on how the EU regulator would calculate any fines after they have filed their reply, one of the people said.
The calculation issue took on heightened importance after Société Générale challenged the way the European Commission arrived at its €446 million penalty in the Euribor case, the person said.
“Without a shade of a doubt the size of any fine is the top consideration for companies under antitrust investigations,” Pierre-Henri Conac, a professor in banking law at the University of Luxembourg, said.
“Banks will of course also be fighting the EU on the substance of its legal arguments.”
- Bloomberg
