Regulator slaps record €1.7bn of fines on Euribor banks

The European Commission (EC) has confirmed that it's fined eight global banks a total of €1.7bn (£1.4bn) for the rigging of interest rate benchmarks. The penalty is the biggest yet to be imposed on banks.

The Commission said that traders at the banks: "discussed their bank's submissions for the calculation of the Euro Interbank Offered Rate (Euribor) as well as their trading and pricing strategies." The lenders were also accused of colluding to rig the Yen London Interbank Offered Rate (Libor).

Deutsche Bank will pay €465m, Societe Generale €445m and RBS €131m. Barclays will avoid a fine, as it has already settled with US and UK regulators over manipulation.

Deutsche and RBS will pay an extra €259m and €260m respectively to settle Yen Libor rigging allegations. JP Morgan will pay €79m and Citibank €70m, while RP Martin will pay €247,000.

UBS will not be fined as it alerted the EU to the rate-rigging manipulation.

RBS, Barclays, UBS, Rabobank and Icap have already paid out $3.5bn to other regulators in Libor-related settlements.

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