Media: EU has banned ten leading world banks from participating in the placement of government bonds

According to The Wall Street Journal and the Financial Times, the EU authorities have banned ten leading banks in the world, previously implicated in market fraud, from participating in a large-scale placement of government bonds worth € 750 billion. With reference to sources in the European Commission, the media reported that they will not be able to British Barclays, American JPMorgan Chase, Bank of America and Citigroup, Japanese Nomura, Italian UniCredit, French Credit Agricole.

Earlier, the EU found these banks guilty of various market manipulations – with exchange rates, in creating cartels on the bond market, etc. The EU’s official position regarding the current placement is that banks that have violated EU antitrust laws “will not be invited to participate in the competition for individual syndicated transactions.”

In May, the European Commission fined UniCredit and Nomura a total of € 371 million for cartels in the primary and secondary markets of European government bonds. In the spring of 2019, the European Commission announced the imposition of a fine totaling € 1.07 billion on five banks – British Barclays and RBS, American Citigroup and JPMorgan, as well as the Japanese MUFG – for cartel conspiracy in the currency markets.

As a result, according to media reports, the leading participants in the current placement will be French BNP Paribas, British HSBC, Italian Intesa Sanpaolo, American Morgan Stanley, Danish Danske Bank and Spanish Santander.

Evgeny Khvostik

Leave a Reply

Your email address will not be published.