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Bank Margins at Risk as EU Probes Credit-Default Swaps Market

U.S. and European Union regulatory crackdowns on credit-default swaps threaten to erode the largest banks’ control over the $30 trillion market.

The EU is examining whether 16 investment banks, including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Deutsche Bank AG, colluded in giving information to Markit Group Ltd., a data provider majority-owned by Wall Street’s biggest lenders. Regulators also will probe whether nine of the firms struck unfair deals with Intercontinental Exchange Inc.’s European derivatives clearinghouse, shutting out rivals.