EU fines German banks in euro scandal

European Union regulators today fined five German banks $90 million for fixing charges for exchanging EU currencies to compensate…

European Union regulators today fined five German banks $90 million for fixing charges for exchanging EU currencies to compensate for the introduction of the euro.

"This behavior was illegal, caused direct and irreparable damage to consumers and also gave a blow to citizen's confidence in the European single currency," EU Competition Commissioner Mr Mario Monti said in a statement.

The EU investigation determined the banks involved colluded in 1997 to charge no less than 3 per cent for the exchange of euro-zone banknotes to compensate for the abolition of the buying and selling "spread" when the euro was launched on January 1st, 1999.

The banks and fines are: Commerzbank AG, $25 million; Dresdner Bank AG, $25 million; Bayerische Hypo- und Vereinsbank AG, $25 million; Deutsche Verkehrsbank AG, $12.5 million; and Vereins- und Westbank $2.5 million.

READ MORE

AP