EC probes interest rate fixing system
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE EUROPEAN Commission said yesterday that it was urgently investigating the national banking association of a European Community country with a view to closing down a system created to help fix domestic interest rates.
The commission did not identify the country or the banking association targeted for action because it wanted to notify the authorities in that country first.
But late yesterday the Luxembourg Bankers Association said it published the kind of information on bank profit margins to which the commission objected.
'If (the commission) has a problem with it we can stop it tomorrow, but we don't see any reason why they should have a problem,' a spokesman said.
The commission said that the system in question 'calculated a national margin and an international margin to evaluate the profitability of the banks' investment transactions in order to indicate the level at which to set interest rates for borrowing and lending'.
The statement was the result of a year-long inquiry ordered by Sir Leon Brittan, the competition commissioner, to obtain information on any interbank agreements concerning interest rate fixing.
A spokesman for the British Bankers Association said yesterday: 'The BBA can confirm that it replied to the commission inquiries. There are no interest rate agreements in the UK and we are not at all surprised that a commission source says that the BBA is not under investigation.'
The commission said the Portuguese banking association was found to calculate indicative rates, but no action was planned.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments