DID THEY RIGG THE SYSTEM????

The European Commission is investigating possible manipulation of the Euro Interbank Offered Rate (EURIBOR) benchmark rate at which banks lend in euros to each other. The EURIBOR is used as a reference for trillions of euros in euro-denominated loans and debt instruments.

A total of 43 banks sit on the EURIBOR panel, which is hosted by the European Banking Federation. The EURIBOR panel banks are the banks with the highest volume of business in the euro zone market. They claim to have a first class credit standing (?), high ethical standards (?) and an excellent reputation (?).

Here they are:

• Austria (Erst Group Bank AG; RZB-Raiffeisen Zentralbank Österreich (AG)
• Belgium (Dexia Bank; KBC)
• Denmark (Den Danske Bank)
• Finland (Nordea; Pohjola)
• France (BNP Paribas; Banque Postale; Crédit Agricole; Crédit Industriel and Commercial (CIC); HSBC France; Natixis/PPCE; Société Générale)
• Germany (Landesbank Berlin; Bayerische Landesbank Girozentrale; Commerzbank; Deutsche Bank; DZ Bank Deustche Genossenschaftsbank; Landesbank Baden-Württemberg Girozentrale; Landesbank Hessen-Thüringen  Girozentrale; Norddeutsche Landesbank Girozentrale)
• Greece (National Bank of Greece)
• Ireland (AIB Ireland, Bank of Ireland)
• Italy (Intesa Sanpaolo; Monte dei Paschi di Siena; Unicredit; UBI Banca)
• Luxembourg (Banque Caisse d'Epargne de l'Etat)
• Netherlands (ING Bank; Rabo Bank)
• Spain: (Caixa Geral de Depositos; Banco Bilbao Vizcaya Argentaria; Banco Santander Central Hispano; Confederacion Espanola de Cajs de Ahorros; la Caixa Barcelona)
• Sweden: (Svenska Handelsbanken)
• United Kingdom (Barclays Bank)
• International Banks (Bank of Tokyo Mitsubishi; Citibank; J.P. Morgan Chase & Co; UBS (Luxembourg) SA)

Banks can be fined up to 10 percent of their global revenues if found to have breached antitrust rules. Under the Commission's leniency policy, the whistleblower gets off scott-free. Fines can be reduced by 30 to 50 percent for the next company to provide evidence of wrongdoing, and by 20 to 30 percent for the following applicant. Subsequent applicants can get a reduction in any penalty of up to 20 percent. To qualify, companies must provide what the regulator terms "significant added value" information.

Whatever the outcome of the investigation may be, fines are just not enough.

1. There is a need for separation of commercial and investment banks; 
2. Too big to fail should no longer be the only option. Banks should be able to be dismantled by the government when sanctions are needed or in time of crisis;
3. Governments must have an alternative such as imposing a fast dismantling of the financial institution;
4. Banks should be required to disclose their entire operational structure worldwide;
5. Collusion (if it is found) must be fought by creating stronger competition and anti-cartel agencies.

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