Rabobank Said To Face LIBOR Fine Of At Least $440m

Piggy Bank And Coins

Rabobank Groep faces a fine of more than $440m for Libor rigging as global regulators seek to increase the $2.5bn in penalties already levied in the rate-manipulation scandal.

Bloomberg reports that Rabobank, the second-biggest Dutch lender, is next in line to reach a settlement with the U.S. Commodity Futures Trading Commission, the Department of Justice and the U.K. Financial Services Authority over claims it tried to manipulate benchmark interest rates, said four people with knowledge of the probe who asked not to be identified because the talks are private.

The penalty, which may come as soon as May, is likely to be between the $440m Barclays Plc (BARC) paid in June and the $612m Royal Bank of Scotland Group Plc paid this month, one of the people said. Rabobank, formed in 1898 as a co-operative to lend to Dutch farmers, is the country’s only contributor to the London interbank offered rate, the benchmark for more than $300 trillion of securities.

Barclays, UBS AG and RBS have been fined more than $2.5bn following a global probe into Libor manipulation. Traders rigged the benchmark to profit from bets on derivatives, while banks sought to submit artificially low rates to appear financially healthier than they were, according to regulators.

Hit the link below to access the complete Bloomberg article:

Rabobank Faces Libor-Rigging Fine of $440 Million Plus

Libor Faces U.S. Critic Gensler at CFTC Rate Roundtable

Gupta Must Pay Goldman $6.2 Mln for Fees Spent in Probe

Register for Financial Markets News Alerts