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EC raids banks in interbank lending rates probe

The European Commission has raided a number of banks across Europe in a probe into suspected fixing of interbank lending benchmark Euribor.

According to a report by Reuters, the EU said it had carried out searches on concerns that the companies involved may have broken antitrust rules.

It is the third major probe into banking this year after separate investigations into credit default swaps, the London interbank rate and cross-border bank payments.

Euribor is the rate at which European banks lend to each other. There are 44 contributors to the lending rate, many more than the London equivalent Libor, including Santander, BNP Paribas and UBS.

The Commission did not identify the companies or countries where it had carried out the raids.

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  1. This type of market abuses always rife when you have large organisations who have little interest in providing real competition in the marketplace.

    I would even go as far to say that there should be further investigations into market insider dealing in particular movements in stock prices and the manipulation of asset prices to suit large corporations. It is not surprising to see that large organisations that are fighting tougher regulations are at the moment manipulating the marketplace to put pressure on regulators either not to investigate or to loosen regulations.

    The only way to stop this type of manipulation is by creating a marketplace that has many smaller players within it so it becomes almost impossible to corroborate and manipulate the market. I also firmly believe that the penalties for such manipulation should be harsher as they are in the USA e.g. 10% of companies profits the next 10 years as a standard fine should a firm be prosecuted under anti-trust laws plus unlimited fines and jail sentences for the individuals involved.

    Both UK and European regulators have been sleepwalking the last 20 years allowing large corporations to merge and takeover smaller firms without realising that this has drastic consequences for the marketplace. I remember seeing one particular analyst in 2008 at the start of the financial crisis state that the banking crisis is the end to smaller organisations and there was a greater need for large banks how stupid is that!!!!!

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