The European Union penalized four large banks a total of $390 million on Thursday for conspiring in a foreign exchange spot trading cartel that allowed them to avoid inherent risks in currency transactions.
HSBC was hit with the largest sanction, about $200 million, while Credit Suisse, RBS, and Barclays were hit with smaller fines. According to the European Commission, the EU’s executive arm, UBS has avoided a sanction since it uncovered the cartel.
“The five banks’ collusive actions harmed the financial sector’s integrity at the expense of the European economy and consumers,” said commission Vice President Margrethe Vestager.
Several foreign exchange spot traders “exchanged sensitive information and trading plans, and occasionally coordinated their trading strategies through an online professional chatroom called Sterling Lads,” the commission said in a statement.
UBS avoided a $106 million fine by revealing the cartel, while Barclays, RBS, and HSBC obtained reductions for collaborating with the EU investigation.
