BofA, RBS Among Banks Fined by Mexico Regulator Over Bond TradesBen Bain and Jonathan Roeder
Bank of America Corp.’s, Royal Bank of Scotland Group Plc’s and Barclays Plc’s Mexico units were among four businesses fined almost 37 million pesos ($2.8 million) combined for government-bond trading that was “contrary to healthy market practices,” regulators said.
The sanctions related to transactions in 2008, according to Mexico’s national banking and securities commission, known as the CNBV. The local unit of Merrill Lynch & Co. also was among those punished for actions prior to its acquisition by Bank of America, according to a statement today from the regulator, which didn’t elaborate on the alleged misconduct.
The banks cooperated with investigators and enacted measures to avoid similar lapses in the future, according to the CNBV, which said the transgressions were limited in scope. Other firms and individuals also have been sanctioned for violations and haven’t paid, it said.
The Merrill Lynch unit faced the highest fine of more than 23 million pesos, followed by Bank of America at 7.2 million pesos, RBS at 4.2 million pesos and Barclays at 2.1 million pesos. Charlotte, North Carolina-based Bank of America agreed in 2008 to buy Merrill Lynch.
Ed Canaday, a spokesman for Edinburgh-based RBS, declined to comment, as did Brandon Ashcraft at London-based Barclays and Bank of America’s Kerrie McHugh.