CFTC Charges Lloyds Banking Group and Lloyds Bank with LIBOR Manipulation

The CFTC issued an Order against Lloyds Banking Group plc and Lloyds Bank plc (collectively, "Lloyds") to bring and settle charges for acts of manipulation, attempted manipulation and false reporting of LIBOR for Sterling, U.S. Dollar and Yen.

The CFTC also settled charges that Lloyds aided and abetted the attempts of derivatives traders at Rabobank to manipulation Yen LIBOR.

In a related action, the U.S. Department of Justice entered into a deferred prosecution agreement with Lloyds, and deferred criminal wire fraud charges in exchange for Lloyds' agreeing to an $86 million penalty and continuing to cooperate. Additionally, the UK Financial Conduct Authority issued a Final Notice regarding its enforcement action against Lloyds and the Bank of Scotland plc.

With this Order, the CFTC imposed penalties of over $1.87 billion on entities for manipulative conduct with respect to LIBOR submissions and other benchmark interest rates.

See: CFTC Order; CFTC Press Release and Examples of Misconduct from Written Communications.Related news: CFTC Orders Interdealer Broker to Pay Penalty for Manipulation of Yen LIBOR (May 15, 2014); FDIC Files Suit against 16 Banks over Alleged LIBOR Rigging (March 17, 2014); CFTC Issues Order against Rabobank for LIBOR Manipulation (with Lofchie Comment) (October 29, 2013); CFTC Charges ICAP Europe Limited with Manipulation of Yen LIBOR (September 25, 2013); CFTC Chairman Gensler Remarks on Benchmark Interest Rates (April 22, 2013); RBS Fined £87.5 Million by FSA for LIBOR Failings (February 7, 2013); Barclays Hit with Substantial Fines for LIBOR and EURIBOR Misconduct (July 3, 2012).