'We have the impression regulators were sleeping', Aukje de Vries of the governing Liberal Party, or VVD, said in Parliament in The Hague Wednesday. 'The Dutch central bank blames Rabobank’s management for not picking up signals. Yet regulators could have asked Rabobank what was going on when they saw those first signals themselves'.
Bloomberg reports that her comments were echoed by the Labor and Socialist parties, representing a vast majority in Parliament, with members expressing outrage at the blow Rabobank dealt to trust in the financial industry.
The bank, a co-operative formed in 1898 to lend to farmers, on 29th October received the second-highest fine, of $1.04bn, from regulators in the U.S., the U.K. and the Netherlands over manipulation of the London interbank offered rate and Euribor. UBS, got the biggest fine of $1.5bn.
The Dutch central bank said on 29th October Rabobank ignored internal and external signals, including reports in the press and from the British Bankers’ Association starting in 2008.
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image: © Lisamarie Babik