Dutch lender Rabobank could receive US$1 bil. in fines over Libor rate: FT
ReutersReuters--Rabobank could face a near US$1 billion fine next week from British and U.S. regulators looking to settle allegations that the Dutch lender helped manipulate the Libor and other benchmark interbank lending rates, the Financial Times reported, citing three people familiar with the matter.
October 24, 2013, 12:07 am TWN
This larger than anticipated penalty would be the second biggest payout by a financial institution since a sprawling global investigation into the rate-rigging scandal began in 2008. UBS late last year paid a record fine of US$1.5 billion.
Rabobank was previously expected to face a fine of between the 290 million pounds (US$470.16 million) imposed on Barclays and the US$612 million deal struck by Royal Bank of Scotland, according to a Bloomberg report from February that cited a source with knowledge of the investigation.
Cooperatively owned Rabobank made an unspecified provision in its first-half results for settling with regulators over the Libor rate scandal, when it reported a 14 percent drop in net profit to 1.1 billion euros (US$1.52 billion), reflecting higher bad debts.