Barclays Plc agreed to pay $100 million to 44 U.S. states to resolve an investigation into interest-rate manipulation by the British bank. It's the first lender to settle state probes into false rate submissions that inflated borrowing costs linked to the London and U.S. dollar interbank offered rates.
The scheme to manipulate rates from 2005 to 2009 masked Barclays's poor health during the global financial crisis at the expense of government entities and not-for-profits whose contracts were linked to the rates, New York Attorney General Eric Schneiderman said Monday in a statement. The false rates also benefited Barclays' own traders at times, the attorney general said.
"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 in the statement.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.