assets German bank and Rabobank They are targeted by the European Commission’s DG Competition. Brussels on Tuesday confirmed a posting statement of accusation both banks accused of violating EU antitrust rules. Both entities would form a cartel. disrupt the competition in the negotiation government bonds in euro A period between 2005 and 2016 coinciding with the euro crisis, which forced the European Union to come to the rescue of countries like Spain.
The European Commission is particularly concerned that the two banks “exchange commercially sensitive information” and “coordinate their pricing and trading strategies when trading these bonds on the secondary market in the European Economic Area”. Coordination took place mainly in the following ways: emails and messages in internet chats.
“For effective competition to work, it is essential that economic agents determine their prices independently. Citizens should be able to trust that financial institutions are not implementing practices that restrict competition in bond trading markets. Now it’s up to Deutsche Bank and Rabobank to respond to our concerns.” Margrethe Vestager. The investigation affects euro-denominated bonds. These include government bonds issued by Eurozone governments, supranational bonds issued by supranational institutions or organizations whose mandates transcend national borders, as well as government-guaranteed bonds issued in response to the 2008 financial crisis and for a limited period of time. time.
possible sanction
If the preliminary opinion of the Community Executive Board is confirmed, the two banks will become one. multi-million dollar fine up to 10% of global annual volume. Although Brussels initially accepted the possibility of negotiating a deal with both parties, it eventually decided to interrupt the talks due to lack of progress and decided to return to the normal antitrust procedure. The filing of the statement of impeachment this Tuesday will be without prejudice to the outcome of the investigation. This is a formal step in the process that allows both parties to examine the documents of the investigation file opened by Brussels, respond in writing, and even request an oral hearing to present their observations and defend themselves.
According to European competition rules, no statutory deadlines The Community Manager’s finalization of the investigation will depend on several factors, including the complexity of the case and the degree of cooperation with the two banking institutions. about this third inquiry It was initiated by Brussels in relation to cartels affecting the bond trading market. In April 2021, the Commission fined three investment banks a total of €28 million for participating in a US dollar bond trading cartel. A month later he determined that seven investment banks had joined a cartel in the European bond market and was fined a total of 371 million euros for this.