The Lloyds Banking Group has agreed to pay £218 million (US$380 million) to British and US regulators to settle allegations that it manipulated Libor, the interest rate benchmark.
The settlements in relation to LIBOR are part of an industry-wide investigation into the setting of interbank offered rates across a range of currencies.
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Under the settlement, the group has agreed to pay £35 million, £62 million and £51 million to the FCA, CFTC and DoJ respectively.
As part of the settlement with the DoJ, the group has also entered into a two-year Deferred Prosecution Agreement in relation to one count of wire fraud relating to the setting of LIBOR.
Lloyds Banking agreed that its its traders rigged a benchmark rate to cut fees it paid the central bank to access emergency taxpayer funding at the height of the financial crisis.
The group has also agreed to pay £70 million to the FCA in connection with the resolution of the BBA Repo Rate issue and related systems and controls failings. Both the CFTC and DoJ settlements are in respect of LIBOR only and neither agency has taken action regarding the BBA Repo Rate.
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By GlobalDataThe manipulation of submissions covered by the settlements took place between May 2006 and 2009.
Lloyds Banking chairman Lord Blackwell, said: "The Board regards the actions of these individuals between 2006 and 2009 as completely unacceptable. Their behaviour involved a gross breach of trust and we condemn it without reservation.
"I have written to the Governor of the Bank of England to make clear we have a common view on this. I am also convinced that it is entirely unrepresentative of the vast majority of our staff who are committed to delivering outstanding service and doing the right thing for customers, recognising that trust is at the core of our business," he added.
The penalty for Lloyds comes more than two years after Libor manipulations at Barclays were exposed and regulators on both sides of the Atlantic imposed a £290 million fine.
This settlement is the seventh joint UK and US penalty in this inquiry.
