Dutch lender Rabobank will pay over $1 billion for rigging interest rates

In America many banks and lenders have been investigated and fined for shady business deals and practices. Now, a Dutch Lender has found itself in trouble for criminal business practices.

Rabobank has admitted that their employees engaged in fixing benchmark interest rates. Benchmark interest rate is the minimum amount an investor will demand for investing in a non-Treasury security as defined by Nasdaq.

The bank offered to pay more $1 billion in criminal and civil penalties for their actions reported NY Times.

The Dutch lender has entered into an agreement that will allow them not to be criminally charged as long as they cooperate with investigators.

E-mails obtained by the U.S. Justice Department according to Bloomberg showed Rabobank employees making jokes at the expense of customers, “(K)...oh dear..my poor customers....hehehe!! manual input libors again today then!!!!”

The lender’s employees have been rigging the rates for over three years, until they were caught. The U.S. is investigating to whether or not federal and local governments lost money due to the actions of Rabobank tampering with interest rates.

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