Dutch lender Rabobank has agreed to pay $1 billion to settle accusations related to Libor interest rate-fixing scandal, making it the fifth bank charged over the said scandal.
In addition to legal charges, the bank also announced that its chief executive Piet Moerland decided to step down.
Libor rates are used to set trillions of dollars of financial deals worldwide, which includes car loans, mortgages, and complex financial transactions.
Regulators are still continuing to investigate the manipulation of Libor inter-bank lending rates since last year amidstBarclay’s penalty by UK and US authorities.
Many international banks have been involved in the scandal, while several legal charges have been imposed against traders. Earlier this year, Royal Bank of Scotland was also charged by US and UK regulators for its participation in the Libor scandal.
The scandal surrounding the bank indicates that Rabobank committed “serious, prolonged and widespread misconduct relating to Libor.”
The Financial Services Authority (FSA) said the bank’s “poor internal controls” prompted an agreement between its traders and Libor submitters and attempts benchmark interest-rate manipulation.
FCA argued that Rabobank didn’t fully acknowledge these wrongdoings until August 2012, despite assuring that “suitable arrangements” were prepared.