Lloyds Banking Group (LBG) is about to reach final settlements with UK and US financial regulators over the Libor-rigging scandal, with the bank expected to face fines of up to £300 million.
The bank, partly owned by the government, would be the seventh UK bank to be fined by regulators over the manipulation of the London interbank offered rate (Libor) scandal, where banks inflated and deflated their rates to profit from trades.
The Royal Bank of Scotland (RBS) faced a £390 million fine from regulators in relation to the scandal, with Barclays also fined around £290 million. It is believed that a similar penalty will be inflicted to Lloyds.
Dutch bank Rabobank, Swiss bank UBS and money brokers Icap and RP Martin were also sanctioned, with the first two fined £637 million and £940 million respectively.
- Charity Bank Impact Awards Winners Announced
- UK Green Investment Bank Privatisation Process to Launch
- GBP 500m European Investment Bank Backing for UK Power Networks’ investment Across Southern and Eastern England
- 10.5 Million Barclaycard Customers at The Mercy of the Base Rate From 1st February
- Blue & Green Daily: Tuesday 7 July headlines
The group confirmed in a statement that the settlement has reached its final stage.
“Lloyds Banking Group notes the recent media coverage regarding potential settlements with a number of government agencies and their investigations into submissions, communications and procedures around the setting of Interbank Offered Rates and other benchmarks”, it said.
“LBG confirms that it is in late-stage settlement discussions with a number of agencies. The settlements remain to be agreed and LBG expects they will include the payment of penalties. LBG will update the market on these issues as appropriate”
Lloyds will have to pay fines to the Commodity Futures Trading Commission and Department of Justice in the US and the Financial Conduct Authority in the UK.
Photo: Elliott Brown via Flickr