Investment bank ABN Amro was yesterday fined £900,000 (1.29 million) for helping US clients manipulate the share prices of European stocks.The regulatory breaches were "extremely serious", said the British Financial Services Authority (FSA). They were related to market misconduct and compliance failures.
The fine is one of the largest imposed by the FSA on an investment bank, although it is dwarfed by the record £4 million that Credit Suisse First Boston had to pay in December for trying to mislead Japanese financial regulators. It is the third fine imposed on ABN in relation to transactions made by ABN Amro Equities traders in 1998.
The FSA yesterday said ABN Amro Equities traders agreed to conduct deals whose purpose was to raise the price of certain shares to pre-determined levels.
This happened on three occasions between April and October 1998 and involved four stocks by several different traders. The stocks involved were Carlton Communications, British Biotech, Volkswagen and Metro.
- (Financial Times Service)
