JPMorgan hit with biggest fine over Euribor fixing

JPMorgan was hit with a nearly $350 million fine for its alleged participation in a bank cartel to manipulate a key financial benchmark rate.

The European Commission said on Wednesday it fined three banks — HSBC, Credit Agricole and HSBC — a total of penalty of $520 million for colluding between September 2005 and May 2008 to fix the Euro Interbank Offered Rate, or Euribor.

Euribor is a lending rate set by using quotes submitted by a panel of banks and is widely employed in international money markets.

All three banks insisted they had not engaged in any wrongdoing.

“We will continue to vigorously defend our position against these allegations, including through possible appeals to the European courts,” JPMorgan said in a statement.

HSBC said it would consider its legal options. Credit Agricole said it would appeal against the commission’s decision, adding the fine would have no impact on its 2016 results given it had already taken provisions.

Deutsche Bank, RBS and Societe Generale admitted guilt in December 2013 and were fined more than $900 million, the sixth largest collective cartel fine ever handed down by the European Commission. Barclays avoided a penalty because it alerted European regulators.