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4/28, 2:47 PM (Source: TeleTrader)
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European Commission fines banks over bonds cartel

The European Commission announced on Wednesday that it has fined Bank of America Corp., France's Credit Agricole SA and Swiss bank Credit Suisse Group AG a total of €28.5 million for participating in a bonds trading cartel and breaking antitrust rules.

Deutsche Bank also took part in the cartel but evaded fines because it disclosed the cartel's existence to the European Commission. The four banks' traders "colluded on trading strategies, exchanged sensitive pricing information and coordinated on prices," stated Executive Vice-President of the Commission Margrethe Vestager. "The cartel harmed the financial markets and today's decision sends a clear message that the Commission will not tolerate any type of collusive behavior," she added.

The cartel was formed in the secondary market of Supra-sovereign, Sovereign and Agency (SSA) bonds denominated in US Dollars.

Breaking the News / MJ