[url="http://www.bangkokpost.com/news/world/357814/eu-accuses-13-banks-of-derivatives-collusion"]Bangkok Post[/url]
[img]http://www.bangkokpost.com/media/content/20130701/516988.jpg[/img]
[quote]EU investigators accused 13 top banks including Barclays, Deutsche Bank and Goldman Sachs on Monday of colluding over derivatives trading, in a new move to tighten banking standards.
A preliminary investigation by the Commission showed that banks worked together to exclude exchanges from the derivatives market.
This was allegedly because they feared involvement by the exchanges would cut into their huge profits from over-the-counter trading.
Some aspects of derivatives trading have been blamed for exacerbating the financial crisis.
The EU's Competition Commissioner Joaquin Almunia said that the banks now had the chance to respond to the detailed accusations.
He said that they could face fines if the charges were confirmed once the investigation had been completed.
"If it is confirmed that banks collectively blocked exchanges from the derivatives market, the Commission could decide to impose sanctions," Almunia said at a press briefing.[/quote]
Got get em' !
The punishment will be a gentle tap on the wrist.
[QUOTE=Reds;41291668]The punishment will be a gentle tap on the wrist.[/QUOTE]
Well that's depressing. Probably because it's entirely true.
Bit of a rubbish source, the fact that two exchange companies may have been prevented from entering the bank-dominated CDS market is completely irrelevant to the financial crash - I also don't quite see why the EU should take action on this when ISDA is based in New York.
And besides, the EU should be more concerned that the CDS market is largely unregulated and is widely considered a 'systematic risk', among loads of other issues.
Not even novel collusion or even generic collusion?
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