LONDON/AMSTERDAM Oct 2 Dutch lender Rabobank
expects to receive a multimillion-pound fine from
British and U.S. regulators within a few weeks to settle
allegations that its traders helped to manipulate benchmark
Two sources familiar with the situation said that a Rabobank
settlement with regulators such as Britain's Financial Conduct
Authority, the U.S. Department of Justice and the U.S. Commodity
Futures Trading Commission is expected this month.
One source familiar with the matter said that the
co-operatively owned bank has been telephoning senior staff
about the expected penalty, which would be the fifth slapped on
financial institutions since a sprawling global investigation
into the rate-rigging scandal began in 2008.
The scandal, which has landed four institutions with fines
totalling $2.7 billion to date, has also resulted in seven
individuals being charged by U.S. and British prosecutors,
scores of institutions and traders interrogated and a spate of
lawsuits launched by disgruntled bank customers who allege that
they lost out financially.
It remains unclear, however, whether a U.S. government
shutdown over a funding battle in Congress could delay any
announcement. Non-essential government work has been halted
until the budget impasse is resolved.
Rabobank, the second-largest Dutch financial group by
assets, is likely to agree to a penalty of between the 290
million pounds ($470 million) imposed on Barclays and
the $612 million deal struck by Royal Bank of Scotland,
Bloomberg reported in February, citing a source with knowledge
of the investigation.
Rabobank bank declined to comment on Wednesday.
More than a dozen banks and brokerages are being
investigated by regulators and anti-trust watchdogs worldwide
for manipulating benchmark rates such as Libor and Euribor,
which are used to price trillions of dollars of products from
derivatives to credit cards.