Rabobank Loses Second Board Member After $1 Billion Libor Fine

Rabobank Groep, said commercial-banking chief Sipko Schat will step down, the second board member to leave after the Dutch lender was fined 774 million euros ($1 billion) for rigging interbank lending rates.

Schat, 53, will depart immediately after the local lenders that own Rabobank withdrew their backing for him, the Utrecht, Netherlands-based bank said in a statement today.

The bank, a co-operative formed in 1898 to lend to farmers, last month received the second-highest fine levied by global regulators over the manipulation of interest rates. Schat, who oversaw the division which made submissions to the London interbank offered rate, remained in his post after Piet Moerland stepped down as chairman following the fine.

“We lose a top international banker, a well-esteemed colleague who has contributed a great deal to Rabobank,” Rinus Minderhoud, who last month succeeded Moerland as chairman, said in the statement.

Rabobank made more than 500 attempts to change Libor, according to regulators. Thirty current and former employees were involved, Schat said when the bank was fined. Five were fired, he said, while 14 are still working for the company.

Global regulators have fined UBS AG, Barclays Plc, Royal Bank of Scotland Group Plc, ICAP Plc and Rabobank about $3.7 billion for distorting Libor and similar benchmarks.

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