The eight previous banks banned After promising “integrity” and providing evidence of “corrective action” after historic breaches of antitrust rules, bond sales from the EU’s € 800 billion stimulus fund have been approved to deal with the issues. future transactions.
Earlier this week, the European Union launched the biggest credit boom in its history, issuing 20 billion euros in bonds, but due to previous scandals involving market manipulation, 10 banks were unable to participate in the transaction. The European Commission said eight of the lenders are now free to deal with future bond unions under the plan.
According to people familiar with the matter, these banks are Deutsche Bank, Crédit Agricole, JPMorgan Chase, Citigroup, Barclays Bank, UniCredit, Bank of America and Nomura Securities. The person said NatWest and Natixis will continue to be excluded for the time being because they have not yet provided relevant information to the EU. Both banks declined to comment.
The European Commission said in a statement: “The information provided by these eight banks allows the Commission to conclude that there is no need for them to be further excluded from participating in syndicated transactions for the issuance of EU obligations “, adding that the decision is in a full analysis taking into account the corrective actions taken by the relevant agencies.
The banker said the “corrective measures” included evidence of how the bank supervised the activities of the traders in the chat rooms, as well as a document called a “sworn statement” which claimed compliance with a series. of European standards.
As the Stimulus Fund transforms Brussels into one of the region’s biggest borrowers, banks excluded from EU transactions risk missing out on a major new source of fees in the European bond market. The commission paid a fee of 20 million euros in the first transaction on Tuesday.
Bank of America, Natixis, Nomura Securities, NatWest and UniCredit were barred from participating in the European syndicate due to the European Commission’s antitrust ruling last month. They participated in the bond trading cartel during the eurozone debt crisis ten years ago.
Citigroup, JPMorgan Chase and Barclays Bank, as well as NatWest, were banned two years ago after participating in forex market manipulation between 2007 and 2013. Deutsche Bank and Crédit Agricole were also excluded because they participated in the April decision on another bond trading cartel.
According to Dealogic data, the banks that were initially excluded from syndication include 7 of the 10 largest European public and supranational debt banks sold this year.
All 10 banks are on the list of 39 primary dealers – these banks participate in the EU’s regular debt auctions which will start in September.
The responsibility of bidding in auctions can sometimes be costly, so banks usually treat syndication fees as a sweetener to get prime brokerage status.