Lloyds to Pay $370M to Settle Libor Manipulation Claims in U.S., U.K.

Lloyds to Pay $370M to Settle Libor Manipulation Claims in U.S., U.K.

 WASHINGTON, D.C. — (Mealey’s) Lloyds Banking Group plc has agreed to pay a total of $370 million to settle claims with U.S. and British agencies  alleging that Lloyds violated various laws by manipulating the London Interbank Offered Rate (Libor), according a press release issued by the Department of Justice yesterday.

According to the press release, under the terms of its settlement agreements, Lloyds will pay $105 million to the Commodity Futures Trading Commission (CFTC) on claims that its actions violated Sections 6(c), 6(d) and 9(a)(2) of the Commodity Exchange Act and $86 million to the Justice Department on claims of wire fraud in connection with its alleged manipulation of the Libor.

The Justice Department also announced that Lloyds has agreed to pay $178 million to the U.K. Financial Conduct Authority for its actions.

Manipulation Scheme

All three agencies allege that Lloyds and subsidiary Lloyds Banking plc, formerly known as Lloyds TSB Bank, as well as HBOS plc, engaged in a scheme to manipulate the Libor from early 2006 through 2009.

Under the terms of the settlement with the CFTC, Lloyds will not be required to admit or deny wrongdoing, but as part of its deferred prosecution agreement with the Justice Department, Lloyds has agreed “to admit and accept responsibility for its misconduct” and will continue to assist the Justice Department in its investigation into Libor manipulation “by other financial institutions and individuals.”

The Justice Department’s press release is available online at http://www.justice.gov/opa/pr/2014/July/14-crm-786.html.

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