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UBS Faces Partial Legal Setback in EU Antitrust Case Involving Credit Suisse’s Role in FX Trading Cartel

By  |  July 23, 2025

In a significant development in the European Union’s ongoing antitrust efforts, UBS Group AG has lost a key element of its legal battle against EU regulators concerning the role of Credit Suisse in a foreign-exchange trading cartel. The case, which stemmed from Credit Suisse’s alleged involvement in a cartel through a shared chatroom, has drawn considerable attention for its implications on both antitrust enforcement and banking mergers.

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    The EU General Court ruled on Wednesday, dismissing UBS’s appeal against the European Commission’s findings from February 2021, which had determined that Credit Suisse participated in the so-called “Sterling Lads” chatroom. This was part of a wider investigation into the practices of several banks accused of coordinating currency trading actions. While UBS, which acquired Credit Suisse in 2023, lost the crux of its appeal, the Luxembourg-based tribunal reduced the financial penalty significantly, slashing it from an initial €83.2 million to €28.9 million.

    According to Bloomberg, the court confirmed that Credit Suisse had indeed participated in the cartel involving the exchange of sensitive trading information within the spot-trading sector. However, the ruling highlighted that the European Commission had erred in determining the correct proxy for Credit Suisse’s sales when calculating the fine. This miscalculation led to a substantial reduction in the fine imposed on the Swiss bank.

    The European Commission’s decision in 2021 accused Credit Suisse, along with other major banks such as HSBC Holdings Plc, Barclays Plc, and Royal Bank of Scotland Group Plc, of conspiring to exchange information that helped them make informed decisions about currency transactions. These actions were said to have allowed the banks to engage in illicit coordination to gain a financial advantage in the foreign-exchange market. The collective penalties for all the banks involved amounted to €344 million. Notably, UBS was not fined in 2021 for its role, as it had alerted authorities to the existence of the cartel prior to its acquisition of Credit Suisse.

    Read more: Swiss Watchdog OKs UBS Takeover of Credit Suisse, No Competition Concerns

    The Commission responded to the ruling by emphasizing that the General Court had “fully confirmed” Credit Suisse’s participation in the cartel and rejected all of UBS’s arguments to the contrary. The EU body also stated that it would carefully review the judgment and consider potential next steps, per Bloomberg.

    This case is just one of several legal entanglements UBS inherited when it took over Credit Suisse, which had been embroiled in a series of legal and regulatory challenges. The ongoing investigation is part of a broader effort by the EU to clamp down on illicit practices in the banking sector, particularly those involving the exchange of sensitive market information.

    The European Union’s investigation into the foreign-exchange market has been one of its most extensive probes into banking practices, spanning more than a decade. Under the leadership of former EU antitrust chief Margrethe Vestager, the EU launched sweeping investigations into chatroom-based information sharing, leading to billions of euros in fines for several major institutions. The Commission’s actions were taken in the aftermath of the 2008 financial crisis, which saw a large number of European banks receiving substantial government bailouts.

    Source: Bloomberg