Dutch bank fined $1.1B in Libor investigation

29/10/2013 18:00

Source: USA Today

Investigation involves illegal rigging of benchmark used to set rates on trillions of dollars in mortgages, car loans, student loans and some financial derivatives.


The scandal over manipulation of an international financial benchmark widened Tuesday as authorities fined a Dutch global bank nearly $1.1 billion for rigging the closely-watched rate.

Rabobank became the fifth firm penalized for manipulating Libor — the London Interbank Offered Rate that's used to set the rates on trillions of dollars of mortgages, car loans, student loans and some complex financial derivatives. Libor rates cover multiple currencies worldwide for varying time periods. The bank also rigged rates for Euribor, a similar financial benchmark.

The rates are set each business day by the London-based representatives of global banks based on estimates of what they would expect to pay for short-term loans from each other in various monetary currencies.

Te U.S. Department of Justice and the Commodity Futures Trading Commission joined the United Kingdom's Financial Conduct Authority and the Dutch public prosecutor's office in imposing the costly settlement penalties against the Utrecht-based bank.


Please note : The content on this site does not always express the viewpoints of the site owner

Many topics are covered and links given, so that you can do your own research


FAIR USE NOTICE: These pages/video may contain copyrighted (© ) material the use of which has not always been specifically authorized by the copyright owner. Such material is made available to advance understanding of ecological, Political, Human Rights, economic, scientific, Moral, Ethical, and Social Justice issues, etc. It is believed that this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior general interest in receiving similar information for research and educational purposes.