Sins of the past are now catching up with a number of very large banks.

You are not allowed to participate in the major reconstruction program of the European Union - at least not in the sale of billion-dollar bonds that the EU is issuing to combat the consequences of the corona crisis.

The so-called reconstruction program of the EU is said to be worth 800 billion euros.

This is a lucrative business for financial institutions that are well versed in the bond market.

However, major institutions such as JP Morgan, Citigroup, Bank of America and Barclays as well as other banks have none of this, reports the Financial Times on its website.

According to insiders, a total of 10 financial institutions will be blocked from EU bond transactions because they have been involved in market manipulation in the past.

The Financial Times quoted an EU spokesman as saying that banks are being excluded from the EU bond program because they have violated EU competition rules.

According to the spokesman, the credit institutions concerned would first have to prove that they had taken measures to prevent breaches of rules in the future before they were allowed to participate in EU bond transactions again.

It appears to be late revenge by the EU for past failings by banks.

According to the Financial Times, the financial institutions Bank of America, Natixis, Nomura, NatWest and UniCredit were also excluded from the transactions after the EU Commission found a month ago that these banks were involved in a bond trading cartel during the euro debt crisis around 10 years ago have been.

Citigroup, JP Morgan and Barclays have been banned from EU bond transactions on the basis of a decision made two months ago.

Deutsche Bank and Crédit Agricole are also feeling the consequences because they were involved in another bond cartel.

The banks declined to comment on the issue, according to the Financial Times.