The European Commission fined Rabobank 26.6 million euros on the grounds that it formed a cartel in the bond market with Deutsche Bank.
Between 2006 and 2016 there were contacts between stock market investors at Rabobank in London and Deutsche Bank in Frankfurt. They shared sensitive information about the buying and selling of some government bonds and bonds issued by other institutions such as the European Investment Bank and regional governments.
Bonds are tradable loans made to governments and companies. Traders were coordinating prices and trading strategies via email and instant messages.
Deutsche Bank avoided a fine of 156 million euros by reporting the cartel to the European Commission. In its response, Rabobank said it had cooperated with the investigation and was disappointed with the outcome. The bank said only a limited number of people were involved in the cartel and that it was considering appealing the decision.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
