EU raids banks on allegations of interest rate manipulation

Deutsche Welle, 19 October 2011 

EU banks may have colluded to
set interest rate derivatives

European antitrust officials have raided several banks in various EU countries as part of an investigation into suspicions of collusion in the financial derivatives sector.

The European Commission said Wednesday it has launched an antitrust probe into several European banks following allegations of interest rate manipulation.

Antitrust officials conducted unannounced inspections at several banks as part of the investigation that began Tuesday. The EC is looking into allegations that the banks may have colluded to manipulate euro interest rate derivatives.

"The Commission has concerns that the companies ... may have violated EU antitrust rules that prohibit cartels and restrictive business practices," the EU executive said in a statement.

The banks involved are part of a group of 44 banks that set the Euro Interbank Offered Rate (Euribor) based on the interest rates they charge for lending to other financial institutions. The Commission did not name the companies that had been raided.

The Euribor sets the value of derivatives that are worth trillions of euros.

Author: Holly Fox (AFP, AP, dpa)

Editor: Martin Kuebler.