HSBC faces €31.7m penalty after EU court decision

HSBC has lost its challenge against a 31.7 million euro ($33.4 million) fine imposed by the European Union (EU) for its involvement in a cartel that manipulated Euribor rates.

The General Court of the EU upheld the 2021 decision by the European Commission, rejecting HSBC’s arguments. The bank now has the option to appeal to the EU’s top court, the Court of Justice of the European Union.

The fine stems from HSBC’s participation, along with JPMorgan Chase and Credit Agricole, in rigging benchmark rates between 2005 and 2008 to boost profits or minimise risks.

While the original penalty in 2016 was set at 33.6 million euros, it was reduced in a revised ruling in 2021 following a 2019 General Court decision that found the initial fine lacked sufficient reasoning.

Other banks involved included Deutsche Bank, RBS, and Societe Generale, which accepted lower fines for cooperating, while Barclays avoided a penalty by disclosing the cartel’s activities.

Attribution: Reuters
Subediting: M. S. Salama