The UK’s competition authority, the CMA, finds from a preliminary investigation that five major banks – Citi, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada – broke the rules by sharing information about the brokerage of bank bills. UK Treasury.
These banks “illegally shared sensitive information” in a series of instant messaging conversations, “regarding the buying and selling of UK Treasury bonds, particularly long-term notes (“gilts”) and swap contracts (” swaps”) related to said bond. loans,” the CMA writes in a press release on Wednesday. These private conversations took place “at various times between 2009 and 2013,” she adds.
“By illegally exchanging confidential information rather than fully competing with one another, the banks involved in these deals may have deprived those who transacted with them of the benefits of competition, including pension funds, UK debt and ultimately , the Treasury and the United Kingdom”. taxpayers,” argues the CMA.
No sanctions against Deutsche Bank
It was Deutsche Bank that alerted the CMA to its involvement in activities “suspected to be illegal”. Citi also fully cooperated. This should allow the former to escape a penalty and the latter to see his potential fine reduced. “We have fully cooperated with the CMA on this matter and are pleased to put it behind us,” Citi said in a statement. The investigation continues and “if the CMA concludes that at least two banks have carried out anti-competitive activities”, it can decide to impose a fine on them.
Morgan Stanley said in a statement that it “cooperated fully with the CMA during this investigation…but we disagree with its preliminary findings and intend to challenge them.” Similarly, HSBC “refutes the CMA’s allegations” and will continue “to make (its) arguments heard until the final decision.”
Source: BFM TV
