Barclays Agrees to Pay $100 Million Over State Libor Probes
- Barclays was fined 290 million pounds over Libor rate in 2012
- UK-based bank is first to settle multi-state investigation
The Barclays Capital building in New York.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Barclays Plc agreed to pay $100 million to 44 U.S. states to resolve an investigation into interest-rate manipulation by the British bank. Its the first lender to settle state probes into false rate submissions that inflated borrowing costs linked to the London and U.S. dollar interbank offered rates.
The scheme to manipulate rates from 2005 to 2009 masked Barclays’s poor health during the global financial crisis at the expense of government entities and not-for-profits whose contracts were linked to the rates, New York Attorney General Eric Schneiderman said Monday in a statement. The false rates also benefited Barclays’s own traders at times, the attorney general said.