Barclays in Libor settlement with US, UK regulators
British bank Barclays will pay at least $450 million to US and British authorities to settle a probe into manipulation of the key interbank lending rate known as Libor.
Regulators have been investigating allegations that several banks, including Barclays, sought to manipulate the London Interbank Lending Rate (Libor), which underpins trillions of dollars of derivatives contracts worldwide and is also widely used as a reference rate for corporate lending.
The US Commodity Futures Trading Commission said Barclays attempted to manipulated Libor submissions "sometimes on a daily basis" over a four-year period starting in 2005. The CFTC ordered the bank to pay a $200 million penalty, saying it was the largest civil monetary penalty it has ever imposed.
Barclays also settled with the US Department of Justice and the UK's Financial Services Authority and will pay fines of $160 million and $92.8 million, respectively.
In March the bank said it was engaged in a possible resolution with regulators looking into potential enforcement proceedings.
As well as the FSA and CFTC, other authorities probing Libor manipulation include the European Commission and Japan's Financial Services Authority.
Other banks involved include Citigroup, HSBC, Royal Bank of Scotland and UBS.