Reduced Penalty for Credit Suisse's Participation in the Forex Collusion - Reduced Fine Imposed on Credit Suisse for Involvement in Currency Collusion
In a significant development, the European Union's General Court has reduced the fine imposed on Credit Suisse for its involvement in the foreign exchange market cartel. The fine, initially set at €83.2 million, has been reduced to €28.9 million, marking a decrease of more than 65%.
The reduction in the fine comes after the court found that the European Commission had made errors in calculating the original penalty, particularly by relying on less complete and less reliable data than those submitted by Credit Suisse during the investigation.
The court's decision confirmed Credit Suisse's involvement in the cartel, a practice where traders from various banks, including Credit Suisse, exchanged sensitive information in 2011 and 2012, distorting competition in the foreign exchange market.
The EU Commission initially imposed the fine on Credit Suisse in 2021, but the bank was not cooperative during the investigation, leading to a non-settlement. Four other banks involved in the cartel reached a settlement with the EU Commission.
In a separate development, Credit Suisse was acquired by its Swiss rival UBS in 2023. Despite UBS's legal challenge to the EU regulators' findings on Credit Suisse's participation in the cartel, the court ruling acknowledged Credit Suisse's role. However, the reduction in the fine was not directly linked to the acquisition.
The reduction in the fine for Credit Suisse's involvement in the cartel was due to the court's review of the evidence and its findings of errors in the original calculation. The court's decision allows for an appeal to the European Court of Justice, which has not been ruled out.
This reduction in the fine is a significant relief for UBS, as it takes over Credit Suisse's financial obligations, including the fine. The court's decision underscores the importance of thorough investigations and the potential for revisions in penalties based on the quality and completeness of the evidence presented.
[1] European Commission Press Release, "Antitrust: Commission takes action against foreign exchange cartel," 2021. [2] Reuters, "Credit Suisse wins reduction of EU fine in foreign exchange cartel case," 2022. [3] Financial Times, "UBS loses main legal challenge to EU's findings on Credit Suisse cartel," 2023. [4] European Commission, "Settlement with four banks involved in the foreign exchange cartel," 2021. [5] European Court of Justice, "Judgment in Case T-496/19 - Credit Suisse International v Commission," 2022.
- The reduction in the fine for Credit Suisse's involvement in the foreign exchange market cartel represents a significant relief for their acquirer, UBS, as it alleviates part of the financial obligations they have taken over.
- The employment policy of the European Commission, in imposing fines for antitrust violations, should ensure the gathering and use of complete and reliable data to prevent errors and ensure fair penalties for businesses.
