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EU regulator accuses JPMorgan, HSBC and Credit Agricole of rigging derivatives market

European Competition Commissioner Joaquin Almunia addresses the media at the European Commission headquarters in Brussels, Tuesday, May 20, 2014. The European Commission's top competition regulator has accused JPMorgan, HSBC and Credit Agricole of colluding to manipulate the price of financial products, 'derivatives', linked to interest rates. Commissioner Joaquin Almunia said Tuesday the banks will now have a chance to respond to his preliminary findings. If the Commission ultimately concludes they have broken the law, it can impose a maximum fine of up to 10 percent of their annual turnover. (AP Photo/Yves Logghe)

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European Competition Commissioner Joaquin Almunia addresses the media at the European Commission headquarters in Brussels, Tuesday, May 20, 2014. The European Commission's top competition regulator has accused JPMorgan, HSBC and Credit Agricole of colluding to manipulate the price of financial products, 'derivatives', linked to interest rates. Commissioner Joaquin Almunia said Tuesday the banks will now have a chance to respond to his preliminary findings. If the Commission ultimately concludes they have broken the law, it can impose a maximum fine of up to 10 percent of their annual turnover. (AP Photo/Yves Logghe)

AMSTERDAM - The European Union's top competition regulator has accused JPMorgan, HSBC and Credit Agricole of colluding to manipulate the price of financial products linked to interest rates.

The European Commission's Joaquin Almunia said Tuesday the banks will now have a chance to respond to his preliminary findings. If the Commission ultimately concludes they have broken the law, it can impose a maximum fine of up to 10 per cent of their annual turnover.

In December 2013, the Commission levied fines totalling 1.04 billion euros ($1.42 billion) on Barclays, Deutsche Bank, RBS and Societe Generale as part of the same case, which covers financial derivatives linked to a benchmark interest rate called Euribor in the period 2005-2008.

Barclays escaped fines for having notified the Commission of the existence of the cartel, and the others were granted a reduction in their fine for co-operating in a settlement.

Almunia noted at a press conference in Brussels that the three banks cited Tuesday, which have not conceded wrongdoing or agreed to a settlement, will "in any case" not receive any reduction in penalty if they are ultimately fined.

A spokesman for HSBC said "we intend to defend ourselves vigorously." A spokesman for Credit Agricole said the bank was still studying the ruling. JPMorgan could not immediately be reached for comment.

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