Ethics Newsline®

BRUSSELS
European Union officials last week began a preliminary investigation into charges that eight Austrian banks conspired for years to fix rates, fees, and banking commissions.

The banks under investigation collectively control half of Austria’s deposits and loans, the Associated Press reported.

EU investigators say they have identified 300 meetings at which bank officials discussed fixing prices and rates. Under EU fair-trading laws, such actions would be illegal and punishable by heavy fines.

The banks have two months to answer the charges in writing, after which they can attend a meeting with EU investigators, who will then determine the validity of the allegations, according to the AP report.

The banks under investigation are Bank Austria AG, Erste Bank AG, Raiffeisenlandesbank Niederoesterreich Wien, Postsparkasse, Landeshypothekenbank Niederoesterreich, Bank fuer Arbeit und Wirtschaft AG, Oesterreichische Volksbanken AG, and Raiffeisen Zentralbank AG.