HSBC and Barclays targeted in Swiss price-rigging probe

HSBC and Barclays are being investigated by Swiss authorities over allegations they rigged the price of precious metals.

The two high street giants are among seven banks targeted by the Swiss Competition Commission (COMCO).

It said in a statement that it ‘had opened an investigation against two Swiss banks, UBS and Julius Baer, as well as against foreign financial institutions Deutsche Bank, HSBC, Barclays, Morgan Stanley and Mitsui’.

COMCO said it had evidence that banks ‘possibly concluded illegal competition-defying deals’ in the trade of precious metals.

The banks have all been informed of the probe, which is likely to conclude in 2017.

Barclays shares fell 3.8pc to 245.2p, while HSBC dropped 2.9pc to 488.95p.

The development increases the pressure on some of the world’s biggest lenders.

The European Commission in August said it was investigating ‘alleged anti-competitive behaviour in precious metals spot trading in the EEA [European Economic Area]’.

And the US Department of Justice is investigating similar allegations against ten banks.

Regulators have turned the spotlight on precious metals and other financial markets after discovering a string of banks had rigged Libor interest rates and foreign exchange markets.

Barclays was fined £26m by the UK’s Financial Conduct Authority (FCA) in May last year for failing to prevent one of its traders from rigging the gold price.

In the summer, Barclays said it was under investigation by the US Department of Justice and other unnamed authorities.

The lender said it was impossible to estimate how much any fines or lawsuits will cost but £2.05bn has been set aside for scandals.

HSBC has also revealed it is under investigation by various regulators. The global giant is also subject to a criminal investigation in Switzerland over allegations it helped clients dodge taxes.

HSBC and Barclays declined to comment.