October 23, 2013 / 1:52 PM / 4 years ago

Rabobank faces second-biggest Libor fine

AMSTERDAM (Reuters) - Dutch bank Rabobank RABO.UL expects a fine over its alleged role in the manipulation of benchmark interest rates, which one source said would be around $1 billion (£618.3 million), in the next two weeks.

A view shows the Rabobank headquarters in Jakarta January 15, 2013. REUTERS/Beawiharta

That would make the Rabobank settlement the fifth Libor-related penalty and the second-biggest in a global investigation.

“Various authorities have almost completed their investigation into Rabobank’s role in the Libor and Euribor setting process,” Rabobank, a cooperative bank, said in a statement.

“Rabobank expects to be able to enter into settlements with these authorities within the next two weeks. Rabobank is not yet in a position to comment on possible settlement amounts.”

A source familiar with negotiations between the bank and U.S., UK and Dutch authorities said the level of the fine being discussed was around $1.0 billion.

Britain’s Financial Conduct Authority, the Dutch central bank and the U.S. Commodity Futures Trading Commission declined to comment. The U.S. Department of Justice did not immediately respond to a request for comment.

U.S. and British authorities have already fined Barclays (BARC.L), UBS UBSN.VX, RBS (RBS.L) and broker ICAP IAP.L around $2.7 billion over the manipulation of benchmark interest rates such as Libor (London interbank offered rate), which underpins more than $300 trillion of financial products.

Reporting by Sara Webb and Kirstin Ridley, Editing by Patrick Lannin and Jane Merriman

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