Rabobank, the co-operative formed in 1898 to lend to Dutch farmers, was fined $1.1bn for its involvement in rigging benchmark interest rates, the second-largest in the global investigation. The bank’s chairman, Piet Moerland, said he would resign.
Bloomberg reports that the lender, based in Utrecht, Netherlands, was fined by the U.S. Commodity Futures Trading Commission, the Department of Justice, the U.K. Financial Conduct Authority and the Dutch public prosecutor’s office, the regulators said in statements Tuesday. The fine brings the total settlements in the rate-rigging probe to $3.7bn.
Rabobank entered into an agreement with the Justice Department to accept responsibility for manipulation of Libor and Euribor to avoid prosecution, the DOJ said. The FCA called the misconduct 'serious, prolonged and widespread'.
The fines make Rabobank the fifth firm penalized over manipulation of the London interbank offered rate. Global investigations into banks’ attempts to manipulate the benchmarks for profit have led to fines and settlements for Barclays, Royal Bank of Scotland, UBS and ICAP.
Rabobank derivatives and money market traders influenced the lender’s submissions to benefit their positions linked to Libor and conspired with employees of other banks to rig rates from May 2005 to January 2011, the FCA said. More than 500 attempts were made by Rabobank to manipulate Libor, according to the regulator.
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