European Union authorities fined multinational banks JPMorgan Chase, Credit Agricole and HSBC for conspiracy over market manipulation. JPMorgan Chase was charged 337 million euros, Credit Agricole with 114 million euros, while HSBC based in London faced a fine of 33 million euros, with a sum amounting to $520 million.
Mergrethe Vestager, the commissioner in charge of European competition policy, said that the financial institutions involved illicitly exchanged classified data to collectively bend interest rates with the intention of increasing their revenue. Barclays, Deutsche Bank, RBS and Societe Generale were charged three years ago for the same violation.
Vocabulary:
conspiracy – the activity of secretly planning with other people to do something bad or illegal
market manipulation – the activity wherein one artificially changes the price of a security or a market movement with the intent to make a profit
illicitly – illegally; in a manner disapproved or not allowed by custom
bend – interpret or modify (a rule) to suit someone; control
revenue – income; earnings
True or False:
- European Union and United Nations officials heavily fined ten multinational banks for conspiracy over market manipulation.
- JPMorgan Chase had the lowest fine among the three banks charged by European Union officials.
- The banks in question were fined a total amount of $528 million.
- Mergrethe Vestager said that the banks did not really intend to manipulate the market to increase their profits.
- There were other banks that committed the same violation four years ago.
Express your opinion:
- It is convenient to use credit cards, despite the interest rates.
- When banks face legal issues, not only are their operations and finances affected, but their customers’ as well.
- Market manipulation is a serious matter, and just imposing fines on banks is not enough as punishment.
- Any businessman will do anything – even something illegal – just to keep his business alive.
Defend your argument:
- Discuss the advantages and disadvantages of owning and using credit cards.
- How has banking changed your life?
- Share your thoughts on this quote: “Banking is a very good business if you don’t do anything dumb.” – Warren Buffett, chairman and CEO of Berkshire Hathaway