British bank to pay £218m penalty

British bank to pay £218m penalty

Tue Jul 29, 2014 1:30AM GMT

Britain’s Lloyds Banking Group has been fined £218 million by British and US regulators for rigging interbank lending rates.

The British bank said on Monday that it will pay the fines, making it the latest global lender to be fined for London interbank offered rate (Libor) manipulation.

According to Lloyds, the manipulation of submissions happened between May 2006 and 2009 and that the employees involved have either left the group, been suspended or are subject to disciplinary proceedings.

It also said that manipulation was limited to a “specific area” of its business, adding that the issues “were not known about or condoned by the senior management of the group at that time.”

The UK-based Financial Conduct Authority and a US-based trading commission issued the fines.

Britain’s fraud prosecutors recently launched a criminal probe into the so-called price rigging in foreign exchange markets amid huge fines on some of the world’s largest banks and investment companies.

Experts say that the investigation will focus on traders who may have personally benefitted from manipulating foreign exchange market benchmarks.

Barclays, HSBC and Royal Bank of Scotland are all part of the ongoing forex market probe.

Barclays was fined £290 million in 2012 by British and US regulators over the manipulation of the Libor and the Euro Interbank Offered Rate (Euribor) between 2005 and 2009.

In February 2013, the Royal Bank of Scotland (RBS) was fined £390 million by UK and US authorities over its involvement in the Libor rigging scandal.

The Libor, which helps determine the price of $350 trillion products worldwide, is calculated daily by averaging submissions from a group of banks.

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