WASHINGTON, April 12 (Reuters) - Europe's competitionauthority should have its first decisions by the end of the yearin an investigation of alleged manipulation of key internationalinterest rates, EU Competition Chief Joaquin Almunia said onFriday.
Regulators in Europe, the United States and elsewhere havebeen looking into charges that traders fixed the interest ratesoffered on the Euro Interbank Offered Rate (Euribor) and LondonInterbank Offered Rate (Libor). The loans were denominated indollars, euros and in the Swiss franc.
"We are investigating collusive actions, some cartels,linked with the manipulation," Almunia, whose office enforcesantitrust law in the European Union, told the American BarAssociation.
Almunia's probe is civil, although a parallel probe in theUnited States is criminal.
If Europe's investigation continues at its current pace,some preliminary decisions should be made by the end of theyear, he said.
The Libor probe is a top priority, Almunia said. "It isabsolutely needed to regain confidence in these benchmarks thatare essential for the functioning of the economy."
European authorities are also looking at potentialmanipulation of interest rates offered in the Tokyo InterbankOffered Rate in Japan, but that probe is not as far along, hesaid.
Euribor and Libor are the key gauges of how much banks pay toborrow from each other. They are used as reference points formany financial products, ranging from Spanish mortgages toderivatives contracts sealed in London. Both are set usinginterbank borrowing rates submitted by banks.
Three banks have reached settlements with authorities todate. Royal Bank of Scotland agreed to pay $612 millionto U.S. and British authorities. UBS agreed inDecember to pay $1.5 billion. Barclays agreed to pay$453 million in June.
Watchdogs in Japan, Canada, Italy, Germany and theNetherlands are also scrutinizing the issue.
Barclays (BARC)
