EU could fine Citigroup next month over Libor submissions

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Citigroup may be fined by the European Union as soon as next month following a probe into the rigging of yen Libor submissions, according to two people with knowledge of the case.

Bloomberg reports that Citigroup will settle the European Commission antitrust probe and receive a 10% discount on its fine, said one of the people, who asked not be named because the talks are confidential Joaquin Almunia, the EU’s antitrust chief, has said he hopes to settle the yen Libor and a parallel Euribor probe by the end of the year.

Regulators around the world are probing whether more than a dozen firms, including Deutsche Bank, colluded to rig benchmark interest rates to mask their true cost of borrowing. Barclays, Royal Bank of Scotland and Rabobank are among firms that have been fined about $3.7bn for rigging the London interbank offered rate, or Libor, the benchmark for more than $300tril of securities worldwide.

Japanese regulators in December 2011 ordered Citigroup, the third-largest U.S. bank by assets, and UBS AG to suspend some operations after the banks’ staff were found to have attempted to influence the Tokyo interbank offered rate, or Tibor. Tom Hayes, a former trader at both Citigroup and UBS, was charged in the U.K. with attempting to manipulate Libor. He has pleaded not guilty.

To access the complete Bloomberg article hit the link below:

Citigroup Said to Face Fine in EU's Yen Libor Probe by Year-End

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