According to a press release issued on May 20th, 2021, the European Commission (EC) found the following banks: Bank of America, Nomura, Natixis, NatWest (RBS), UBS, UniCredit and Portigon (WestLB) guilty of breaching EU antitrust laws through a cartel of group traders of European Government Bonds (EGB) dealing in the primary and secondary market.

Margrethe Vestager, the Executive Vice-President of the EC has reportedly stated, “A well-functioning European government bonds market is paramount both for the Eurozone Member States issuing these bonds to generate liquidity and the investors buying and trading them. Our decision against Bank of America, Natixis, Nomura, RBS, UBS, UniCredit and WestLB sends a clear message that the EC will not tolerate any kind of collusive behavior. It is unacceptable, that in the middle of the financial crisis these investment banks colluded in this market at the expense of EU Member States”.

The banks executed the cartel through a group of traders who regularly contacted each other primarily through chat rooms on Bloomberg terminals, where they exchanged confidential information in the form of updates on the prices and volumes provided to their customers and during the build up to auctions. They went as far as to provide each other with updates on their bidding strategy in the auctions of the issuance of Euro Denominated Bonds on the primary market and secondary market.

The behavior documented by the banks violated EU laws that prohibit the anti-competitive practice of collusion on prices. This is further supported through Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the EEA Agreement.

The conduct took place between 2007 and 2011, negatively affecting the entire European Economic Area (“EEA”). Consequently, the EC implemented pecuniary fines on the following banks: Nomura (€129 million), UBS (€172 million) and Unicredit (€69 million).

The EC further stated, “any person or company affected by anti-competitive behavior may bring the matter before the courts of the Member States to seek damages. The case law of the Court and Council Regulation 1/2003 both confirm that in cases before national courts, a Commission decision constitutes binding proof that the behavior took place and was illegal. Even though the Commission has fined the cartel participants concerned, damages may be awarded without being reduced on account of the Commission fine”.

Our Proposal

Martingale Risk will file actions on behalf of investors who purchased EGB bonds through Bank of America, Nomura, Natixis, NatWest (RBS), UBS, UniCredit and Portigon (WestLB) on the primary and/or secondary market throughout the period January 4th, 2007 – November 28th, 2011. Martingale Risk invites all institutional and individual investors that have invested and experienced losses within the manipulated period to contact the below individuals for a preliminary and free claim evaluation to determine if they may be eligible for reimbursement. We will be operating on a full contingent fee basis of the recovered amount, with no anticipated costs, fees or expenses for the clients.