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HSBC Loses Legal Challenge Over €32 Million EU Antitrust Fine

By  |  November 27, 2024

In a decisive ruling, HSBC Holdings Plc has lost its legal bid to overturn a €32 million ($33.6 million) antitrust fine imposed by the European Union for its role in manipulating the Euribor benchmark, according to Bloomberg. The EU General Court upheld the European Commission’s determination that HSBC was part of a cartel engaged in illegal practices.

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    “The General Court dismisses HSBC’s action,” the tribunal stated, confirming the legality of the 2021 fine. HSBC has the option to appeal the ruling to the European Court of Justice, the EU’s highest court. The bank declined to comment on the matter.

    This ruling marks another chapter in the prolonged legal saga surrounding the EU’s enforcement actions against financial institutions implicated in the Euribor scandal. HSBC’s fine was initially set at nearly €34 million in 2016 but was annulled due to procedural flaws. A recalibrated fine was issued in 2021, which the court has now affirmed. The broader investigation originally resulted in a collective €485.5 million fine levied against HSBC, JPMorgan Chase & Co., and Credit Agricole SA for colluding and sharing sensitive financial data. These banks opted out of an €824.6 million settlement reached by four other institutions, including Deutsche Bank AG.

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    Euribor, the euro interbank offered rate, is a critical financial benchmark used to calculate interest payments on a vast array of financial products, from corporate loans to mortgages, amounting to trillions of euros. The benchmark reflects banks’ estimated borrowing costs over various time periods.

    This latest judgment reinforces the European Commission’s stance on combating cartel behavior in the financial sector. While some banks settled early in the investigation, others have faced prolonged legal battles, with HSBC’s case being one of the most prominent to reach this stage.

    Source: Bloomberg