Bloomberg News reports that the lender has set aside about $1.03bn for sanctions stemming from international investigations into the bank’s role in rigging the London interbank offered rate, a key interest-rate benchmark, according to a survey of seven analysts. The lowest estimated provision in the survey was $750m, while the highest was $1.2bn.
The company is approaching a settlement with U.S. and U.K. regulators seeking a total fine of at least $1.5bn, one person familiar with the matter said last week. The penalty would be larger than those paid by any of the other seven banks that have settled with the U.S. and U.K. over Libor.
“The need for additional provisions is certainly manageable,” said Dieter Hein, an analyst at Fairesearch/AlphaValue, who has a reduce recommendation on the stock. An additional charge “wouldn’t really be that significant if you compare it with what they’ve paid for litigation in the past.”
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