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EU Commission fines six banks £1.4bn over Libor

The European Commission has fined six European banks €1.71bn (£1.4bn) over alleged rigging of Libor rates.

Deutsche Bank has been fined the most at €725m while Société Générale has to pay €446m. The Royal Bank of Scotland has been fined €391m and JPMorgan has to pay €80m.

Barclays and UBS have avoided fines for Euribor and Yen Libor manipulation respectively due to whistleblowing to EU officials over illegal practices.

Both banks may still be open to private damages claims in court.

European Commission competition commissioner Joaquín Almunia says: “What is shocking about the Libor and Euribor scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other.

“This decision sends a clear message that the commission is determined to fight and sanction these cartels in the financial sector. Healthy competition and transparency are crucial for financial markets to work properly, at the service of the real economy rather than the interests of a few.”

Syndaxi Chartered Financial Planners managing director Robert Reid says: “The US may use the European Commission fines as a lever to litigate, then the amounts could be higher. The Americans could be waiting for these fines, and then these could escalate in the long term.”

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