Published On: Wed, Feb 15th, 2017

Banks face sanctions over collusion

JOHANNESBURGcompetition-commission, (CAJ News) – THE Competition Commission seeking the prosecution of a number of banks in South Africa for alleged collusion.
Inducted banks include Bank of America Merrill Lynch International Limited, BNP Paribas, JP Morgan Chase & Co, JP Morgan Chase Bank N.A, Investec Ltd, Standard New York Securities Inc., HSBC Bank Plc, Standard Chartered Bank and Credit Suisse Group.
Others are Standard Bank of South Africa Ltd, Commerzbank AG; Australia and New Zealand Banking Group Limited, Nomura International Plc., Macquarie Bank Limited, ABSA Bank Limited (ABSA), Barclays Capital Inc and Barclays Bank plc.
The Competition Commission has referred a collusion case to the Tribunal to prosecute the finance houses.
“The referral of this matter to the Tribunal marks a key milestone in this case as it now affords the banks an opportunity to answer for themselves,” said the Commissioner, Tembinkosi Bonakele.
The commission said it had been investigating a case of price fixing and market allocation in the trading of foreign currency pairs involving the Rand since April 2015.
It found that from at least 2007, the respondents had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US Dollar / Rand currency pair.
Further, the Commission found that the respondents manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers at particular times.
This is against the Competition Act.
The commission hence wants the fine to fine the banks an administrative penalty equal to 10 percent of their annual turnover.
CAJ News


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