EU slaps three banks with $520m in fines for price collusion

Three major banks, including HSBC, have been fined a combined $520m (£413m) by EU regulators for alleged price collusion ahead of the financial crisis.

The competition commissioner Margrethe Vestager said the bank, along with JPMorgan Chase (Swiss: JPM-USD.SW - news) and Credit Agricole (Swiss: ACA.SW - news) , had illegally exchanged sensitive information on financial products linked to the benchmark Euribor interest rate.

Euribor is the eurozone equivalent of the London Interbank Offered Rate, or Libor, which was found also to have been manipulated by banks in the past.

The EU confirmed it was continuing to investigate claims of foreign exchange manipulation among a number of banks.

The market rigging, in this case, was said to have taken place between 2005 and 2008 but the EU said it was tricky to put a value on the sums raked in by the banks as a result.

The EU said it had fined JPMorgan Chase €337m (£287m), the French bank €114m (£97m) and London-based HSBC €33m (£28.1m).

It marked the second stage of the case against the sector after fines totalling more than €1bn were levied against Barclays (LSE: BARC.L - news) , Deutsche Bank (IOB: 0H7D.IL - news) , RBS (LSE: RBS.L - news) and Societe Generale (Swiss: 519928.SW - news) as part of the same EU investigation three years ago.

Those banks had chosen to settle the EU case while the three fined on Wednesday did not.

Ms Vestager said: "A sound and competitive financial sector is essential for investment and growth. Banks have to respect EU competition rules just like any other company operating in the single market."

JPMorgan (LSE: JPIU.L - news) indicated it may appeal the ruling as it denied any wrongdoing.

HSBC said: "The European Commission's decision relates to allegations of Euribor manipulation and related purported conduct during the course of one month in early 2007.

"We believe we did not participate in an anti-competitive cartel.

"We are reviewing the European Commission's decision and considering our legal options."

A number of individuals from various banks are facing trial next year accused of being directly involved in Euribor-rigging following a separate Serious Fraud Office inquiry.