Suspected agreement between 5 banks in the United Kingdom, according to the British competition authority

2023-05-24 12:58:53

These private conversations took place “at various times between 2009 and 2013». Stock Adobe

These banks broke the rules by “illegally sharing sensitive information” about brokering UK Treasury bills, according to the UK competition authority.

The UK 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 on the brokerage of UK treasury bills. These banks haveillegally shared sensitive information” in series of instant messaging conversations, “relating to the buying and selling of UK Treasury Notes, particularly Long Term Loan Notes (‘gilts») and exchange contracts (“swaps») relating to such bond loans“Wrote the CMA in a press release on Wednesday. These private conversations took place “at various times between 2009 and 2013“, she adds.


«By illegally exchanging sensitive information rather than fully competing with each other, the banks involved in these arrangements may have deprived those who do business with them of the benefits of competition, including pension funds, the British debt, and ultimately the British Treasury and taxpayers“, argues the CMA. It was Deutsche Bank that alerted the CMA to its participation in activities “supposedly illegal“. Citi also fully cooperated. This should allow the first to escape a sanction and the second to see its potential fine reduced. “We have fully cooperated with the CMA in this matter and are happy to put it behind us.“Said Citi in a statement sent to AFP. The investigation continues andif the CMA finds that at least two banks have engaged in anti-competitive activities“, it may decide to impose a fine on them.

Morgan Stanley said in a statement sent to AFP that it had “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 allegationsand continue to “make (his) arguments heard until the final decision».


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