Rabobank is set to face a fine of almost $1bn for the alleged manipulation of Libor and other benchmark interbank lending rates as early as next week as regulators continue to punish the architects of a scandal that has shaken trust in the financial system.
The Dutch lender’s likely penalty, confirmed by three people familiar with the situation, would be the second-biggest paid by a financial institution in the rate-rigging scandal, and would be higher than expected.
Three banks and one brokerage firm have so far reached a settlement on charges they helped to manipulate Libor and other interbank lending rates widely used as references across the globe.