Pre-reading questions:
- When you were a child, did you dream of having your own business?
- What do you think makes business exciting or interesting?
- Do you think it is difficult to be a bank manager? Discuss.
Three international banks were fined by European Union officials for maneuvering the price of financial products. The banks were said to have been involved in a cartel from 2005 to 2008. Authorities found that the banks used various instant messaging services to share information on their trading and pricing strategies.
E.U. penalized the banks totaling to $520 million, with JPMorgan Chase worth 337 million euros, France’s Credit Agricole with 114 million euros and London-based HSBC with 33 million euros. According to Margrethe Vestager, EU competition commissioner, the banks mentioned intentionally traded confidential data to gain profit in the financial market. Three years earlier, Barclays, Deutsche Bank, RBS and Societe Generale were fined for committing the same violation.
Vocabulary:
maneuver – carefully guide or manipulate (someone or something) in order to achieve an end
cartel – a group of similar independent companies who join together to control prices and limit competition
intentionally – on purpose; consciously; knowingly
Comprehension Questions:
- Why were three banks fined by European Union officials?
- What banks were fined by European Union officials?
- How did the banks in question shared information to control the market?
- What was the intent of the banks for trading confidential data?
- What banks were charged with the same violation three years ago?
Express Your Opinion:
- How much do you know about banking and finances?
- What are your thoughts about the article?
- If you were a businessman/businesswoman, how would this news affect you and your business?
- If you were the president of one of the affected banks in the article, what would you do?