ECONOMIC FREEDOM FIGHTERS STATEMENT ON THE COMPETITION COMMISSION’S FINDINGS AGAINST MAJOR BANKS OPERATING IN SOUTH AFRICA.
15 February 2017
The Economic Freedom Fighters notes the findings of the Competition Commission against major banks operating in South Africa and trading with the South African Rand. The Competition Commission issued a believable statement that illustrates that the following banks were involved in price fixing and market allocation in the trading of foreign currency pairs involving the Rand;
1) Bank of America Merrill Lynch International Limited,
2) BNP Paribas,
3) JP Morgan Chase & Co,
4) JP Morgan Chase Bank N.A,
5) Investec Ltd,
6) Standard New York Securities Inc.
7) HSBC Bank Plc,
8) Standard Chartered Bank,
9) Credit Suisse Group;
10)Standard Bank of South Africa Ltd,
11)Commerzbank AG;
12)Australia and New Zealand Banking Group Limited,
13)Nomura International Plc.
14)Macquarie Bank Limited
The Competition Commission found that “from at least 2007, the Banks had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US Dollar / Rand currency pair. Further, the Commission found that the respondents manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers at particular times”.
The EFF notes that the Competition Commission has referred this case to the Competition Tribunal, and we call on the Tribunal to impose maximum sanctions provided for in Competition legislation in South Africa. Furthermore, the EFF will write to the South African Reserve Bank to demand that the banking and operating licences of these banks must be discontinued immediately because we believe collusion around South Africa’s currency is treacherous and should be treated as such.
The EFF has been as the forefront of fighting financial crimes in South Africa and we believe that the revealed scandal of the colluding banks must be dealt with decisively. Politically, the South African government must commence processes of establishing a viable, efficient and sound State Bank which will insulate our country from the callous thirst for maximum and immoral profits pursued by the existing banks.
In the immediate, the South African government and all State institutions to disassociate from the banks that are involved in collusion. The cowardice government must now illustrate to the banks that despite their systemically important financial position, they are not above the law and not beyond reproach. Most of these banks have been platforms for massive illicit financial flows, money laundering and corruption committed in South Africa and the entire developing world.
The EFF will do everything in its power to ensure that all the demands we make here to government, Reserve Bank, and the Competition Tribunal are fully implemented.
Statement issued by the Economic Freedom Fighters, 15 February 2017
