Deutsche Bank Avoids EU Fine Over Euro-bond Trading Cartel With Rabobank -- Update

By Ian Walker

Deutsche Bank has avoided a 156 million Euro ($170.2 million) fine from European Union authorities after revealing its part in a Euro-bond trading cartel with Rabobank.

The European Commission--the EU's executive arm and its antitrust enforcer--said that the German bank wasn't fined under its leniency program for informing them of the cartel's existence.

However, Rabobank has been fined EUR26.6 million for its part in the cartel, the Commission said.

The Dutch Bank said that it has fully co-operated with the Commission's investigation and is disappointed by the result, adding that it's considering an appeal. The fine amount has already been provisioned in its accounts for 2022, Rabobank said.

"Rabobank seeks to maintain a strong culture of compliance across its business and employees worldwide, including in relation to competition law, and considers its obligations in this regard to be of the utmost importance," it said.

The Commission said that between 2006 and 2016 the two banks, through some of their traders, exchanged commercially sensitive information and coordinated their trading and pricing strategies.

Under the European Commission's leniency program, a participant in a cartel can avoid a fine, or get a large discount, for disclosing being part of one, and co-operating in an investigation.

"Deutsche Bank has proactively cooperated with the European Commission in this matter and, as a result, has been granted full immunity. In accordance with the European Commission's guidelines, no financial penalty was imposed on Deutsche Bank," a spokesperson told Dow Jones Newswires.

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(END) Dow Jones Newswires

November 22, 2023 07:12 ET (12:12 GMT)

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