Extracts from the press conference by Joaquín Almunia on the statement of objections to 13 investment banks, ISDA and Markit in credit default swaps investigation
On 1 July 2013, Joaquín Almunia, Vice-President of the EC in charge of Competition, held a press conference on the statement of objections sent by the EC to 13 investment banks, ISDA and Markit in credit default swaps investigation.
The EC informed some of the world's largest investment banks of its preliminary conclusion that they infringed EU antitrust rules that prohibit anti-competitive agreements by colluding to prevent exchanges from entering the credit derivatives business between 2006 and 2009. The sending of a statement of objections does not prejudge the final outcome of the investigation.
The statement of objections is addressed to Bank of America Merrill Lynch, Barclays, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Royal Bank of Scotland, UBS as well as the International Swaps and Derivatives Association (ISDA) and data service provider Markit.
The Commission takes the preliminary view that the banks acted collectively to shut out exchanges from the market because they feared that exchange trading would have reduced their revenues from acting as intermediaries in the OTC market. PHOTO SHOTLIST