|
Banks face euro charges
|
 |
February 17, 1999: 5:48 a.m. ET
EU competition commissioner attacks high cost of euro transactions
|
LONDON (CNNfn) - European banks face charges of illegally colluding to inflate foreign exchange charges after competition officials from the European Commission raided eight banks Tuesday.
The EC said the cost of euro transactions had failed to drop since the launch of the single currency on Jan. 1, despite lower transaction charges and exchange rate risks for the banks. The Commission claims it has evidence that banks and national banking associations had agreed not to pass on savings to consumers.
A team of 30 EU officials swooped down on eight banks Tuesday morning as part of an ongoing investigation into bank charges in Euroland. The Commission targeted Deutsche Bank (FDBK), Dresdner Bank (FDRB), Crédit Agricole (PCAF), Société Générale (PGLE), Banca Commerciale Italiana, Italy's Cariplo and Spain's Banco Bilbao and Argentaria.
But the EU says it suspects other institutions have been involved in artificially inflating charges. 'There were solid indications that something was going on," said Stefan Rating, spokesman for the EU's competition commissioner Karel Van Miert.
"It is striking that at a time when banks' costs have been significantly reduced, commissions have not come down. And we have indications that banks have agreed not to raise them," Rating added. The banks raided were chosen because of the high volume of foreign-exchange charges they carry out. Rating said there have also been a large number of complaints about charges in the Netherlands.
The European Parliament is also carrying out its own investigation. 'There is a parallel attitude to the setting (of commissions) which could be by accident or intent," said Christa Randzio-Plath, chairwoman of the Parliament's monetary affairs subcommittee. "I am investigating and protesting against the high level of charges," she said.
The banks raided have denied collusion charges and the European Banking Federation said the range of transaction charges across Euroland reflect the different cost structures of individual banks.
|
|
|
European Union
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
