Europe Probes Goldman Sachs, JPMorgan, Investment Banks Over Default Swaps

[Donnachaidh]

http://www.bloomberg.com/news/2011-04-29/goldman-sachs-jpmorgan-face-eu-antitrust-probe-of-cds-market.html

Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and 14 other investment banks face the first-ever European Union antitrust probes into the swaps market, following investigations by U.S. regulators.

The EU is examining whether 16 banks, including Citigroup Inc. (C) and Deutsche Bank AG (DBK), colluded by giving market information to Markit Group Ltd., a data provider majority-owned by Wall Street’s largest banks. It will also check if nine of the firms struck unfair deals with Intercontinental Exchange Inc.’s European derivatives clearinghouse, shutting out rivals.

“Lack of transparency in markets can lead to abusive behavior and facilitate violations of competition rules,” Joaquin Almunia, the EU’s competition commissioner, said in an e-mailed statement. “I hope our investigation will contribute to a better functioning of financial markets.”

Global regulators have sought to toughen regulation of the $30.3 trillion credit-default swap market, saying the trades helped fuel the financial crisis. The EU’s probes add to separate investigations in the U.K. and U.S. into whether banks colluded to manipulate the London interbank offered rate.

More at the link ---

[aquart]

1. Wish we would.

Hope they're mean to them.

[Donnachaidh]

2. my thoughts exactly

But I'll bet dollars to donuts this admin will do it's damndest to quash this - just like it did with the Bush war crimes investigation.