UK finds five big banks may have breached competition law

The UK Competition and Markets Authority (CMA), Citi, Deutsche Bank, HSBC, Morgan Stanley and the Royal Bank of Canada have predetermined that they may have breached competition law by sharing confidential information about government bond trading in chat rooms online at different times in 2009-2013 explained.

In the CMA statement, it was noted that a preliminary determination was made that 5 large banks shared confidential information at least once in one-on-one meetings in Bloomberg terminal chat rooms.

TWO BANKS AGREE TO ACHIEVE AGAINST THE COMPETITION

In the statement, it was noted that the confidential information shared regarding government bond trading included asset trades, prices and trading strategies, while Deutsche Bank warned the CMA about its involvement in the illegal activity in question, while Citi requested forbearance during the investigation.

In the statement, it was stated that both banks admitted to engaging in anti-competitive activities.

In this context, it was indicated in the statement that Deutsche Bank will not be fined and that the penalty to be applied to Citi will also be reduced.

“The CMA investigation is ongoing and banks may be subject to violations or fines if the investigation concludes that two or more banks are engaged in anti-competitive activity. These CMA findings are not definitive. Deutsche Bank and Citi have admitted to having participated in these conversations. HSBC, Morgan Stanley and Royal Bank of Canada have pleaded not guilty. At this stage, it should not be assumed that any of the banks are breaking the law.”

“REQUIRES A DETAILED INVESTIGATION”

Commenting on the investigation, CMA Chief Compliance Officer Michael Grenfell said: “Our current interim ruling is that the top 5 banks broke the law by sharing confidential information on government bonds in chat rooms after the financial crisis. world. “These activities could deprive taxpayers, savings account holders, and financial institutions of the benefits of perfect competition for these products, including minimizing borrowing costs.”

Noting that the illegal activities in question are very serious and require detailed investigation, Grenfell said: “While both Deutsche Bank and Citi acknowledge that they are engaged in anti-competitive behavior, we will consider the parties’ other statements before making a final decision. decision.” He made his assessment. (BRITISH AUTOMOBILE CLUB)