Trigger
On 11/22/2013, I read an article in the Wall Street Journal of the same day titled “UBS to Avoid Fine in EU Libor Probe” (subscription only).
According to this article, UBS and Barclays, PLC will be granted immunity by the EU authorities for cooperating in their misguided LIBOR scandal investigations.
Apparently also Canada and other national authorities have granted some kind of immunity to UBS.
Corporate Whistleblowers?
EU rules in grant immunity to corporations in cartel cases to encourage corporate wrongdoers to self-report collusion.
Does this remind you of special witness protection or immunity granted to witnesses in organized crime case? Are such drastic measures necessary in alleged business collusion cases? I think not!
What we have here is that in a highly competitive industry like the banking sector those who are first to profess to cooperate in some fashion and deliver whatever damaging evidence the prosecutor is looking for go free and the rest of the competitors will be indicted and have to pay the fines?
Very nice indeed!
Fight!
I strongly recommend that all other banks should take the fight to the EU Commission instead of accepting their punishment!
So far it seems only Credit Agricole, HSBC, and surprisingly J. P. Morgan (who just accepted $14 billion fine) may opt to fight back.
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