Banking giants fined €1bn for 'Banana Split' and 'Essex Express' foreign exchange cartel

Five banking giants including Barclays and RBS have landed a combined €1.07bn (£940m) fine for taking part in two foreign exchange trading cartels named "Essex Express" and "Three Way Banana Split". 

The European Commission has fined the banks, which also include Citigroup, JPMorgan and MUFG, for participating in one or both of the cartels. A sixth bank, UBS, avoided a penalty because it blew the whistle on the cartels. 

The Commission, which started its investigation in 2013, said that traders working for the banks had exchanged "sensitive information and trading plans" and occasionally co-ordinated their trading strategies in online chatrooms. 

"Most of the traders participating in the chatrooms knew each other on a personal basis - for example, one chatroom was called Essex Express 'n the Jimmy because all the traders but 'James' lived in Essex and met on a train to London," the Commission said.

"Some of the traders created the chatrooms and then invited one another to join, based on their trading activities and personal affinities, creating closed circles of trust." 

Other chatrooms were named "Semi Grumpy Old men", "Two And a Half Men" and "Only Marge". The alleged rigging of the foreign exchange market took place between 2007 and 2013. 

"These cartel decisions send a clear message that the Commission will not tolerate collusive behaviour in any sector of the financial markets," said competition commissioner Margrethe Vestager. "The behaviour of these banks undermined the integrity of the sector at the expense of the European economy and consumers."