Cartel Digest

Interest Rate Derivatives (Swiss Franc LIBOR)

Interest Rate Derivatives (Swiss Franc LIBOR)
  Overall Cartel Period 2008-2009
  Participants RBS, JP Morgan
  Total Fines (DOJ) No fines imposed
  Total Fines (EC) €61.6 million
In October 2014, the European Commission (“EC”) found that two international banks operated a cartel on Swiss franc LIBOR benchmark interest rate derivatives. Interest rate derivatives (e.g. forward rate agreements, swaps, futures, options) are financial products that are used by banks or companies for managing the risk of interest rate fluctuations. The EC’s investigation disclosed that between March 2008 and July 2009, the participants tried to distort the normal course of the pricing of interest rate derivatives denominated in Swiss franc. They discussed the future Swiss Franc Libor rate submissions of one of the banks and at times exchanged information concerning trading positions and intended prices. The EC imposed monetary fines against a participating bank. 
Enforcement Highlights:
  • The EC imposed fines of €61.6 million on an international financial institution.
Company Fine Date
RBS No fines imposed 10/21/2014
JP Morgan € 61.7 million 10/21/2014