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22 BUSINESS & FINANCE Friday, 24 November 2023
Rabobank Faces €26.6 Million Fine from
Brussels in Bond Trading Cartel Case
THE European Commission has imposed a fine of €26.6 tion, emphasizing its commitment to addressing the matter.
million on Rabobank for engaging in secret agreements
with Deutsche Bank related to the trade of state bonds. The This is not the first time Rabobank has faced significant
commission found that the two banks exchanged confiden- penalties. Previously, the bank was fined €774 million in an
tial information and agreed upon prices, violating European out-of-court settlement for its involvement in manipulating
competition rules. international interest rates, a scandal commonly referred to
as the Libor scandal.
Deutsche Bank, however, escaped a fine of €156 million
by cooperating with the commission under the leniency The European Commission’s decision to penalize Rabobank
program, securing full immunity for revealing the cartel, as underscores the authorities’ commitment to enforcing
stated in the commission’s official statement. competition rules and combating anti-competitive practices
within the financial sector. The leniency shown to Deutsche
The illicit trading activities occurred over a decade, span- Bank highlights the significance of cooperation in such
ning from 2006 to 2016. Traders based in Frankfurt and investigations.
London communicated via email and chatrooms, sharing
information on prices, volumes, current and future trading As Rabobank evaluates its options for appeal, the case
strategies, positions, and the identities of counter-parties. emphasizes the regulatory scrutiny faced by financial insti-
In response to the fine, Rabobank expressed disappoint- tutions engaging in illicit agreements and underscores the
ment and is contemplating an appeal to the European court. broader efforts to ensure fair and competitive practices in
The bank asserted its cooperation throughout the investiga- financial markets.
