Rabobank Takes $555 Million Provision to Settle Dutch Swaps
- Lender had taken earlier charge of 200 million euros
- Deutsche Bank considering whether to join compensation plan
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Rabobank Groep agreed to settle a long-running dispute with Dutch businesses over interest-rate swaps that backfired after the 2008 financial crisis.
The closely held lender will increase provisions by 500 million euros ($555 million) for compensating about 9,000 clients that had bought about 11,000 swaps, the Utrecht-based lender said in a statement on Thursday. Rabobank had already made provisions of 200 million euros over the issue in 2015 according to bank spokesman, Hendrik Jan Eijpe.