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EU clears banks banned from bond deals after ‘declaration of honor’


Eight banks previously Banned from sharing In bond sales to the European Union’s 800 billion euro redemption fund, it was approved to handle future transactions after promising “integrity” and providing evidence of “remedial action” after historic violations of antitrust rules.

The European Union launched its largest-ever borrowing spree earlier this week with a €20 billion bond sale, but 10 banks were frozen from working on the deal due to their previous involvement in market fraud scandals. The European Commission said eight of these lenders are now free to deal with future bond loans under the programme.

The banks are Deutsche Bank, Crédit Agricole, JPMorgan, Citigroup, Barclays, UniCredit, Bank of America and Nomura, according to a person familiar with the matter. NatWest and Natixis will continue to be excluded for the time being because they have not yet provided relevant information to the European Union, the person said. The two banks declined to comment.

“The eight banks provided information that allows the Commission to conclude that their further exclusion from participating in aggregated transactions in EU bond issues is not justified,” the commission said in a statement, adding that the decision came after “a comprehensive analysis considering the remedial measures applied by the relevant institutions.” .

The bankers said the “remedial measures” included evidence of how banks monitor the activities of merchants in chat rooms, as well as a document known as a “declaration of honor” that stipulates adherence to a set of EU standards.

Banks excluded from EU deals are at risk of losing a major new source of fees in European bond markets, as the recovery fund turns Brussels into one of the region’s largest borrowers. The Commission paid 20 million euros in fees on Tuesday’s opening deal.

Bank of America, Natixis, Nomura, NatWest and UniCredit were barred from participating in EU syndicated loans due to a commission antitrust ruling last month, as they participated in a bond-trading cartel during the eurozone debt crisis a decade ago.

Citigroup, JPMorgan, and Barclays, as well as NatWest, were banned after finding out two years ago that they had been involved in manipulating currency markets between 2007 and 2013. Deutsche Bank and Credit Agricole were also excluded due to the April ruling of their involvement in a different bond-trading cartel.



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