On Nov. 27, ECJ upheld a fine on HSBC for euro rate swap collusion.
EU General Court upheld a fine on HSBC for online trader collusion with other banks to manipulate euro interest rate derivatives; the court dismissed HSBC’s procedural challenge against the cartel fine imposed by the European Commission in 2021.
In 2016, EU CMSN fined Crédit Agricole, HSBC, JPMorgan Chase for participating in a euro interest rate derivatives cartel; traders colluded by manipulating key Euribor euro interbank offered rates; colluded in online in corporate chat-rooms, instant messaging.
HSBC was fined €33.6mn, Deutsche Bank, RBS and Société Générale involved in same cartel, admitted their roles; cartel whistle-blower Barclays was spared a sanction.
HSBC challenged the decision and in 2019 the General Court annulled the fine on the ground that the methodology used by the EU CMSN to calculate it was inadequate.
In 2021, EU CMSN imposed a new fine of €31.7mn on HSBC, prompting the bank to challenge the decision again, this time claiming the EU CMSN's decision was adopted outside a 10-year limitation period of running from the end of the infringement.
In 2023, the EU Court of Justice dismissed part of the HSBC challenge denying its participation in the cartel, leaving aside the action seeking the annulment of the fine.
2024 Judgment
General Court confirmed 2021 fine saying under EU law, limitation period is suspended for as long as EU CMSN decision is subject of proceedings pending before an EU Court.
As a result, the fine was found to be squarely within limitation period and was legal.
Regulators
ECJ; Lawsuit
Entity Types
Bank; BHC
Reference
LR Case T-561/21, PR, 196/2024, 11/27/2024; T-105/17, 9/24/2019; 1/12/2023 Case C-883/19 P; Case AT.39914
