Regulation

JPMorgan Chase, Citigroup fined by European Commission over Libor manipulation

240px-J_P_Morgan_Chase_Logo_2008_1.svgJPMorgan Chase and Citigroup on Wednesday became the first U.S. banks fined by the European Commission for Libor manipulation that affected hundreds of billions of dollars in contracts for credit cards and mortgages.

The EC fined six banks, including RBS and Deutsche Bank, with $2.3 billion in total penalties for their alleged collusion in rigging the key benchmark rates. JPMorgan settled for $109.2 million to resolve claims that the company engaged in Yen Libor manipulation, The Washington Post reports.

“The settlement makes no finding that JPMorgan Chase management had any knowledge or involvement in the conduct at issue, or that the traders’ actions had any impact on the firm’s Libor submissions or the published Libor rates,” JPMorgan said.

The CFTC has punished four European banks, including RBS, Barclays, UBS and Rabobank, for their participation in the alleged illicit activity, but the agency is still investigating U.S. banks’ participation, according to The Washington Post.

Between 2005 and 2008, bank traders allegedly colluded on data submissions involved in the calculation of Euribor, and a similar plan was undertaken in Japan. Citigroup agreed to pay $95 million for its participation in the Japanese plan, and it received complete immunity for its cooperation with authorities.

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