Business

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.

Advertisement

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...
Real journalists. Real journalism. Subscribe to The Boston Globe today.
You're reading  1 of 5 free articles.
Get UNLIMITED access for only 99¢ per week Subscribe Now >
You're reading1 of 5 free articles.Keep scrolling to see more articles recomended for you Subscribe now
We hope you've enjoyed your 5 free articles.
Continue reading by subscribing to Globe.com for just 99¢.
 Already a member? Log in Home
Subscriber Log In

We hope you've enjoyed your 5 free articles'

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 BostonGlobe.com
Marketing image of BostonGlobe.com