Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Barclays reaches $100 million U.S. Libor settlement - NY attorney general

Published 08/08/2016, 18:41
© Reuters. A "no parking" road sign is seen in front of a Barclays branch in downtown Rome
BARC
-
NWG
-
DBKGn
-
NXGN
-
UBSG
-

By Sarah N. Lynch

WASHINGTON (Reuters) - Barclays (L:BARC) has reached a $100 million (£76.70 million) multi-state settlement over charges that it manipulated the Libor and Euribor interest rate benchmarks, New York Attorney General Eric Schneiderman said on Monday.

The settlement with 44 states marks the latest in a series of enforcement actions the bank has faced in connection with Libor manipulation.

Barclays is the first of several banks under investigation by state attorneys general to reach a settlement, Schneiderman said in a statement, adding that the bank cooperated with the multi-state probe.

He said government entities and non-profits were "defrauded of millions" when they entered into swap contracts with Barclays as a result of the rate-rigging.

In 2012, Barclays reached a $453 million agreement with the U.S. Justice Department, the Commodity Futures Trading Commission and British authorities to settle parallel charges.

As part of its agreement with the Justice Department, Barclays admitted to wrongdoing that occurred between August 2005 and May 2008, when some of its traders called their counterparts at competing institutions and colluded to submit Libor rates that benefited their trading positions.

"Barclays is pleased to have resolved the state attorneys' general investigation into Barclays' legacy LIBOR- and Euribor-related activities," a Barclays spokesman said.

"We believe this settlement is in the best interests of our shareholders and clients, and allows us to continue to focus on the future and serve our clients."

Other banks that have reached settlements with U.S. authorities in connection with Libor rate-rigging scandals include UBS (S:UBSG), Royal Bank of Scotland (L:RBS), Deutsche Bank (DE:DBKGn) and ICAP (L:IAP).

© Reuters. A "no parking" road sign is seen in front of a Barclays branch in downtown Rome

"There has to be one set of rules for everyone, no matter how rich or how powerful, and that includes big banks and other financial institutions that engage in fraud or impair the fair functioning of financial markets," Schneiderman said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.