IN THE EURIBOR MANIPULATION CASE

HSBC escapes a fine of 33.6 million Euros

30 sep. 2019 English Section
A.V.
HSBC escapes a fine of 33.6 million Euros

HSBC Holdings Plc, the biggest banking group, was partially exonerated in a case of manipulation of the Euribor, as the European General Court decided to revoke the fine of 33.6 million Euros levied upon the lender.

According to the international press, the court ruled that the fine has been established based on "inadequate arguments". In spite of this, the Court ruled that the bank was guilty of breaking the law.

HSBC has been fined by the antitrust regulatory authorities of the EU for the alleged manipulation of the Euribor. In that particular case, HSBC, Credit Agricole SA of France and JPMorgan Chase & Co. of the US have been fined a total of 485 million Euros (520 million dollars) by the European Commission in 2016. The three banks have denied the charges and challenged the ruling in court.

HSBC got the biggest fine in the case, being part of the cartel for just one month, JPMorgan, the biggest US bank being fined 337.2 million Euros, and Credit Agricole - 114.7 million Euros.

The banks have been accused of having agreed, between September 2005 and May 2008, to manipulate the Euribor interest rate, in order to influence the prices of several securities on a global level. According to the European Commission, HSBC, JPMorgan and Credit Agricole have violated EU antitrust laws.

In may 2014, the fines against the three banks were announced, while they continued to deny any wrongdoing. Therefore, delays in penalizing the banks have occurred.

Last week's ruling could support the decision of HSBC to distribute surplus capital to shareholders.

In August, HSBC announced it would eliminate approximately 4,000 jobs of a new restructuring program which also involves the dismissal of CEO John Flint just 18 months into his term.

"We have announced a restructuring plan which involves the elimination of 2% of the workforce, meaning 4000 jobs", HSBC CFO, Ewen Stevenson, said at the time, who added that the removal of those jobs concerned several high responsibility positions.

The decision to dismiss John Flint was surprising, described by the president of the bank as necessary to speed up progress of strategic priorities, such as the turnaround of its US operations.

Flint, aged 51, has led the retail and wealth management operations of HSBC prior to becoming CEO, in February 2018. His appointment was the first major decision made by the first chairman of HSBC, brought in from the outside, Mark Tucker, who joined the board of the bank at the end of 2017.

In the first six months of 2019, HSBC got a gross profit of 12.41 billion dollars, up 15.9% over the first semester of 2018.

The bank announced that it would buy back stocks worth 1 billion dollars.

Opinia cititorului

Articole din aceeaşi secţiune

English Section

THE STOCK MARKET DURING THE "COVID-19" PANDEMIC VIDEOCONFERENCE / SEBASTIAN BODU, STATE COUNCILOR WITH THE CHANCELLERY OF THE PRIME MINISTER: "The Sovereign Wealth Fund will be a private-equity fund with subscriptions in companies not listed on the stock exchange"
26 iun. G.M.


Nicu Marcu, validated by Parliament as head of the ASF
25 iun. Mihai Gongoroi


JUNE 23RD - AN EVENT FORGOTTEN BY ALMOST EVERYBODY25-year anniversary of the inauguration of the Bucharest Stock Exchange
23 iun. MAKE


ADRIAN VOLINTIRU, CEO:"Romgaz has not abandoned any investment project during the pandemic"
22 iun. Mihai Gongoroi


The chairman seat awaits Nicu Marcu
19 iun. Mihai Gongoroi


REPORT FROM NEW YORKThe fight between "Black Lives Matter" and "All Lives Matter"
18 iun. Daniel Amariei


SOURCES:White smoke from the PSD and the PNL for the leadership of the ASF
17 iun. Mihai Gongoroi


The Covid-19 pandemic - threat or a false alarm?
16 iun. George Marinescu


THE FISCAL COUNCIL WARNS:The government should prepare for an economic contraction as high as 8-9%
15 iun. MIHAI GONGOROI (TRANSLATED BY COSMIN GHIDOVEANU)


The Euro - every which way
12 iun. MIHAI GONGOROI (TRANSLATED BY COSMIN GHIDOVEANU)





<<
Back
Accesează
versiunea desktop

Copyright MetaRing © 2003-2020.
Toate drepturile rezervate.

Legea copyright-ului şi tratatele internaţionale protejează acest site. Nimic din acest site ori din site-urile afiliate nu poate fi reprodus sub nici o formă şi în nici un fel fără permisiunea în prealabil scrisă de la Grupul de Presă BURSA.