Date
20 October 2017
Lloyds has apologized for the behavior of some traders involved in rate-setting activities. Photo: Bloomberg
Lloyds has apologized for the behavior of some traders involved in rate-setting activities. Photo: Bloomberg

Lloyds to pay US$370 mln to settle rate probe

Lloyds Banking Group agreed to pay US$370 million to settle a probe into manipulation of benchmark interest rates, including the London interbank offered rate (Libor), the Wall Street Journal reported.

The deal comes after investigations by the Department of Justice and Commodity Futures Trading Commission in the US, as well a probe by UK’s Financial Conduct Authority into rate-rigging practices.

Lloyds admitted Monday that its traders rigged a rate to help cut fees it paid to UK’s central bank to access emergency taxpayer funding at the height of the financial crisis, the report said.

The London-based financial institution said it has reimbursed the Bank of England nearly 8 million pounds (US$13.6 million) to make up for the fees it avoided paying to the taxpayer-backed program.

The Bank of England will pass the cash to the UK Treasury, making it one of the first institutions to be compensated for the effects of rate rigging, the report said.

Lloyds apologized for its behavior on Monday and said the rigging of the BBA repo rate was restricted to four individuals. The bank is said to have suspended all four traders.

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RC

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