EU: 13 banks to fight charges of credit derivatives collusion

Thirteen of the world’s largest investment banks are set to challenge EU charges against the lenders that they squeezed rivals out of the credit derivatives market, according to sources.

Reports said Monday that the banks, which include Deutsche Bank, Goldman Sachs and Citigroup, will fight the charges at a hearing next month, months after the European Commission accused the banks of colluding to prevent Deutsche Boerse and the Chicago Mercantile Exchange from accessing the credit default swaps industry.

According to reports, the Commission claims the banks prevented the exchanges from entering the market between 2006 and 2009.

According to one source, the hearing, which will be closed-door, is set for May 12 and will last a week.

While the Commission declined to comment on the matter, reports say European Commissioner Joaquin Almunia will not rule on the case as he is set to leave his post later this year; instead, he will let his successor decide on the matter.

Full Content: Reuters

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