Lloyds Banking Reaches Settlement On LIBOR

(RTTNews) - Lloyds Banking Group Plc. (LLOY.L, LYG) Monday said it has reached settlements totalling 218 million pounds to resolve with UK and US federal authorities legacy issues regarding the manipulation of Group companies' submissions to the British Bankers' Association or BBA London Interbank Offered Rate or LIBOR and Sterling Repo Rate.

The manipulation of submissions covered by the settlements took place between May 2006 and 2009. The individuals involved have either left the Group, been suspended or are subject to disciplinary proceedings.

The lender said its board would now consider all the remuneration implications and potential actions available to it.

On LIBOR, the Group has reached settlements with the Financial Conduct Authority or FCA in the U.K., the United States Commodity Futures Trading Commission or CFTC, and the United States Department of Justice or DoJ in relation to investigations into submissions during the period and related systems and controls failings.

Lloyds agreed to pay 35 million pounds, 62 million pounds and 51 million pounds to the FCA, CFTC and DoJ, respectively.

As part of the settlement with the DoJ, the Group has also entered into a 2-year Deferred Prosecution Agreement in relation to one count of wire fraud relating to the setting of LIBOR.

The Group has agreed to pay 70 million pounds to the FCA in connection with the resolution of the BBA Repo Rate issue and related systems and controls failings.

Meanwhile, the CFTC Monday said separately that it issued an Order against Lloyds Banking Group plc and Lloyds Bank plc.

The order settles charges for acts of false reporting and attempted manipulation of the LIBOR for Sterling, U.S. Dollar, and Yen committed by employees of Lloyds TSB and HBOS plc, which was acquired by Lloyds Banking Group in January 2009.

The order requires Lloyds Banking Group and Lloyds Bank to pay a $105 million civil monetary penalty, cease and desist from their violations of the Commodity Exchange Act, and adhere to specific undertakings to ensure the integrity of LIBOR submissions in the future.