Mexico's Antitrust Commission Fines Banks, Traders in Bond Probe
By Anthony Harrup
MEXICO CITY--Mexico's antitrust agency said Monday that it fined
seven banks and 11 traders a total of $1.7 million for involvement
in manipulating prices of certain Mexican government bonds between
2010 and 2013.
The federal competition commission fined units of Barclays Bank
Plc, Deutsche Bank AG, Banco Santander SA, Citigroup Inc., Bank of
America Corp., Banco Bilbao Vizcaya Argentaria SA and JPMorgan
Chase & Co., as well as 11 traders who had used messaging
services contracted by the banks.
The commission said it found evidence of 142 agreements to
manipulate prices of Mexican government bonds in the secondary
market, which had an impact on buyers of the bonds for 29.4 million
pesos, around $1.5 million at the current exchange rate.
It said the market manipulation occurred before Mexico's
competition laws were changed and sanctions for violations were
increased. "This market has to be trustworthy and competitive,
because it can have a large impact on public finances and on the
public's possibilities for saving," it said in a release.
The intervention of antitrust authorities led to changes in the
way financial institutions interact, and dissuades illegal
agreements in the sector, the commission added.
Banco Santander Mexico denied violating competition laws and
said it will contest the fine in federal courts. BBVA Mexico said
it has a "different interpretation" than the conclusion reached by
the commission, and that it is analyzing its next steps.
Citigroup, Deutsche Bank, JPMorgan and Bank of America declined
to comment, and Barclays couldn't immediately be reached for
Write to Anthony Harrup at email@example.com
(END) Dow Jones Newswires
January 25, 2021 13:31 ET (18:31 GMT)
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