EU clears banks banned from bond deals after ‘honor declaration’

Formerly eight banks it is forbidden to participate The sale of the € 800 billion EU Recovery Fund bonds came after a series of breaches of antitrust rules promised to settle future transactions after promising “integrity” and providing evidence of “recovery measures”.

The EU launched its once-large loan of € 20 billion in bonds earlier this week, but 10 banks were left out of the deal due to their previous involvement in market fraud scandals. Eight of those lenders will now run free bond syndicates under the program for free, the European Commission said.

The banks are Deutsche Bank, Crédit Agricole, JPMorgan, Citigroup, Barclays, UniCredit, Bank of America և Nomura, according to a person familiar with the case. NatWest և Natixis will continue to be excluded for the time being as they have not yet provided relevant information to the EU. Both banks declined to comment.

“The eight banks have provided information that allows the Commission to conclude that their further exclusion from syndicated transactions in the issuance of EU bonds is not justified,” the Commission said in a statement, adding that the decision was made “taking into account the remedial measures taken by the institutions concerned.” »:

The “recovery measures” included evidence of banks conducting police operations in chat rooms, as well as a document known as the “Declaration of Honor” which stated that a number of EU standards were adhered to.

Banks excluded from EU transactions were at risk of losing a major new source of payment in European bond markets as the recovery fund made Brussels one of the largest borrowers in the region. The commission paid € 20 million for the first deal on Tuesday.

Bank of America, Natixis, Nomura, NatWest և UniCredit were barred from participating in EU trade unions by a commission antitrust decision last month that they participated in a bond-trading cartel a decade before the eurozone debt crisis.

Citigroup, JPMorgan և Barclays, in addition to NatWest, were banned after it was discovered two years ago that they were involved in currency markets in 2007-2013. Deutsche Bank և Crédit Agricole were also excluded due to an April decision involving the trading of other bonds.

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