Rabobank fined €774m for interest rate scandal, CEO resigns
Dutch cooperative bank Rabobank has been fined €774m for its role in the Libor interest rate fraud by the British, US and Dutch supervisory authorities.
The bank said in a statement that 30 Rabobank employees were involved in the scandal and that chief executive Piet Moerland is standing down. Supervisory board chairman Marinus Minderhoud will replace him on an interim basis.
‘The public has to be able to trust that Rabobank employees operate with our core values in mind. That is why I have today decided that, as a matter of principle, it is appropriate for me to resign,’ Moerland said in a statement.
The Financial Times said the US department of justice has not filed criminal charges against individuals as part of the settlement. ‘People familiar with the criminal probe said the DoJ is still investigating at least one former money manager at the bank and weighing whether to file charges in the near future,’ the FT reported.
The bank says it has now implemented a ‘comprehensive package of measures to enhance compliance, reduce risk and improve culture’.
Barclays, UBS and Royal Bank of Scotland have already been fined in connection with the scandal. Barclays had to pay €330m, RBS around €460m and UBS almost €1.1bn.
‘Rabobank will remain financially stable despite the payment of these significant settlement amounts,’ the statement said.
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