European Union Lifts Bond-Sale Ban for Some Banks

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The European Union lifted the ban against some banks that had been excluded from working on its bond sale earlier in the week.

JPMorgan Chase & Co. , Citigroup Inc, Bank of America Corp. , Barclays PLC, Deutsche Bank AG , Nomura Holdings Inc, UniCredit SpA and Credit Agricole SA are among the banks cleared to work on future bond sales, according to an EU official.

When the EU issued €20 billion, equivalent to $24 billion, of bonds on Tuesday to raise funds for a fiscal stimulus package, it excluded some of the world’s largest banks because of their participation in cartels in bond and currency markets in earlier years. The banks had been penalized for those actions in 2019 and 2021.

The banks that have been cleared will be eligible to work on future issuances and were informed on Friday, the European Commission, which is the trade bloc’s executive arm, said by email. “Their further exclusion from participation in syndicated transactions in EU bond issuances is not warranted,” it said.

The EU expects to sell up to €60 billion of long-dated debt this year and €150 billion annually through 2026, and plans to use the funds to support member states’ economic recovery through a mix of grants and loans. The program, the first major pan-European debt program, will eventually raise around €800 billion over five years.

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