BRUSSELS, Nov 27 (Reuters) - HSBC ( HSBC ) on Wednesday

lost its challenge against a 31.7 million euro ($33.4 million)

EU cartel fine after Europe's second top court sided with EU

regulators in the long-running case.

The European Commission, which acts as the EU competition

watchdog, levied the fine in 2021, saying HSBC ( HSBC ), JPMorgan Chase ( JPM )

and Credit Agricole took part in a cartel to

rig benchmark Euribor rates in 2007.

"The General Court confirms the Commission's amended

decision against HSBC ( HSBC ). The revised fine of 31,739,000 euros is

upheld," the Luxembourg-based tribunal said as it rejected all

of HSBC's ( HSBC ) arguments.

HSBC ( HSBC ) can appeal to the Court of Justice of the European

Union, Europe's top court.

The EU antitrust enforcer had originally handed out a fine

of 33.6 million euros to HSBC ( HSBC ) in its 2016 decision but the

General Court in 2019 scrapped the penalty saying regulators had

failed to provide sufficient reasoning.

The Commission subsequently issued a second ruling in 2021

by trimming the fine.

The Commission has said the cartel of seven banks colluded

between September 2005 and May 2008 to try to rig Euribor

interest rates - a benchmark for rates on financial products

such as interest rate swaps, futures, saving accounts and

mortgages - to increase profit or reduce risk.

Deutsche Bank, RBS and Societe Generale

admitted wrongdoing in return for much lower fines, while

Barclays ( JJCTF ) blew the whistle on the cartel and escaped a

penalty.

EU, U.S. and British regulators have fined banks billions of

euros for manipulating benchmark interest rates and the foreign

exchange market.

The case is T-561/21 HSBC Holdings and Others v Commission.