More Bank / Brendan McDermid
Bank stocks are displayed in red on the Paris Stock Exchange. The sector is penalized by grievances issued by the European Commission. Brussels has informed eight European Union banks that it suspects them of having agreed to distort competition in the European government bond market (OEE) between 2007 and 2012.
However, it did not specify which institutions are in its sights. The banks concerned would have concerted during the acquisition and trading of the bonds. "Traders working for banks exchanged commercially sensitive information and coordinated their trading strategies, which would have taken place mainly – but not exclusively – in online discussion forums," says the Commission.
The financial institutions concerned could be fined up to 10% of their annual global turnover, if they were found guilty of the facts alleged against them following the investigation conducted by Brussels.
The Commission states that this investigation concerns "only certain traders". It "does not mean that the alleged anti-competitive practice was widespread in the EST sector".
The bank has already sued Deutsche Bank, Credit Agricole, Credit Suisse and a fourth bank it suspects of an agreement on the bond market in a separate file, More Bank said. After the publication of a Brussels communiqué concerning them on December 20, the Crédit Agricole share had fallen.
This Thursday, January 31, the Societe Generale stock fell by 3.72% at the close of the Paris Bourse. BNP Paribas shares also fell by 3.20% and Crédit Agricole's value dropped by 2%. The European Banking Sector Index, the Euro Stoxx …
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