Dutch Rabobank to settle claims of yen manipulation

By Marc Castro

Oct 22, 2013 10:35 PM EDT

A total of USD1 billion would be paid out by Rabobank Groep in order to resolve regulators' claims that the Dutch bank had tried to manipulate benchmark interest rates. This was confirmed by two people with knowledge of the proceedings.

The said settlement may be announced as early as next week and would resolve claims with the US Commodity Futures Trading Commission and the US Department of Justice, as well as Dutch regulatory authorities and the UK Financial Conduct Authority. This was according to the sources, who requested anonymity as the agreement was not yet made public.

Rabobank is the largest mortgage lender in the Netherlands. It would be joining other banks for improprieties committed by their traders for attempts to rig the London Interbank Offered Rate, which is the benchmark interest rates for banks worldwide. 

The said agreement would resolve claims of manipulation of the benchmark rate for the Japanese yen. The settlement has since been delayed on account of the US government shutdown, which had limited the support staff that had worked on the deal according to one of the sources.

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