You can now read 5 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

Dutch bank settles Libor case

WASHINGTON — Rabobank of the Netherlands has agreed to pay about $1 billion to settle US, British, and Dutch charges of manipulating a key global interest rate. The bank’s chairman resigned as it became the fifth financial firm sanctioned in the international rate-rigging scandal.

The amount Rabobank is paying includes $325 million in an agreement with the US Justice Department that allows the bank to avoid criminal prosecution.

Continue reading below

The authorities said Tuesday that Rabobank engaged in rigging of the London interbank offered rate, or Libor, from 2005 to 2011.

Rabobank announced that Piet Moerland, chairman of the executive board, resigned, effective immediately.

Libor affects trillions of dollars in contracts around the world, including mortgages and consumer loans. A British banking trade group sets the rate daily after more than a dozen big banks submit estimates of their borrowing costs.

Loading comments...
Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
Please enter a valid email will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of
Marketing image of