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.
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.