$2.3 Billion in Fines for Euro-Rate Rigging (CNBC.com)
The European Commission (EC) handed down its largest fines ever, totaling $2.3 billion, for interest rate rigging. The following five global banks will be sharing that record fine: Citigroup, Deutsche Bank, Royal Bank of Scotland (RBS), JPMorgan and Societe Generale. These five financial institutions were found guilty of rigging either or both the Libor (inter-bank lending rate) and Euribor (inter-bank lending rate for unsecured funds) rates to improve profits on all sides. Only two of the banks, Deutsche Bank and RBS, were fined for rigging both sets of rates. Investors will have to sort out which of the five banks they should steer clear of, and which to still consider investing in.
Sign up to the Human Events newsletter