EU Raids Major Banks Suspected Of Interest-Rate Cartel

Raid

BRUSSELS (AP) — The European Union’s competition watchdog says it conducted unannounced inspections at several European banks after suspecting they may have colluded to manipulate euro interest rate-derivatives.

The European Commission said Wednesday that it was looking into a possible cartel by companies active in the sector of derivatives linked to the Euro Interbank Offered Rate — a key interest-rate benchmark.

The Commission didn’t name the firms it inspected on Tuesday.

There are trillions of euros in derivatives whose value is based on developments in the Euribor.

The Euribor is set by a group of banks and is based on the interest rates they charge for lending to other financial institutions.

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