Dutch bank Rabobank to pay £637m fine for Libor scandal
Wednesday, October 30th, 2013 By
Dutch bank Rabobank has agreed to pay €744m (£637m) following an investigation into the Libor and Euribor scandal.
The bank’s announcement confirms earlier reports suggesting that it would face a larger than expected fine.
Wout Dekker, chairman of the Rabobank supervisory board, said, “I am deeply disappointed that a number of Rabobank employees engaged in unacceptable conduct and that our systems and controls were not sufficient to prevent this.”
The investigation found that 30 Rabobank employees were involved in “inappropriate conduct”. A number of employees also “sought to influence certain Rabobank Libor and Euribor submissions between 2005 and 2010”.
Additionally, some staff member “inappropriately communicated with employees at other banks and brokers”. The investigation also concluded said that the bank did not sufficiently appreciate the risks associated with the Libor and Euribor submission processes.
The agreement has been made with regulators and authorities in the Netherlands, UK, US and Japan.
The bank’s executive board chairman Piet Moerland resigned with immediate effect following the investigations. He commented, “Such behaviour is entirely contrary to our core value, of which integrity is the most important.
“The public has to be able to trust that Rabobank employees operate with our core values in mind. That is why I have today decided that, as a matter of principle, it is appropriate for me to resign.”
UBS and Deutsche, Germany’s largest bank, have both seen legal costs impacting on their quarterly profits. Both banks have to reserve substantial amounts to cover possible losses from lawsuits demonstrating the impact scandals are having on the industry.
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