Rabobank said it has entered into agreements with De Nederlandsche Bank (DNB), the Dutch Public Prosecutor (DPP), the United Kingdom Financial Conduct Authority (FCA), the United States Commodity Futures Trading Commission (CFTC), the United States Department of Justice (DOJ) and the Japanese Financial Services Agency (JFSA), in connection with their investigations into Rabobank’s London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (EURIBOR) submission processes.

Rabobank has agreed to pay settlement amounts to the DPP, FCA, CFTC and DOJ totaling approximately US$1.06 billion (EUR 774 million). Settlements per authority are: DPP: EUR 70 million, FCA: GBP 105 million, CFTC: US$475 million and DOJ: US$325 million.

Rabobank said a number of employees inappropriately sought to influence certain Rabobank LIBOR and EURIBOR submissions between 2005 and 2010. Some Rabobank employees also inappropriately communicated with employees at other banks and brokers about certain LIBOR and EURIBOR submissions between 2005 and early 2011. In total, 30 employees were involved in, aware of, or should have been aware of, the inappropriate conduct. Rabobank said it employs more than 60,000 people in 42 countries.

During the period in which the inappropriate conduct occurred, Rabobank did not sufficiently appreciate the risks associated with the LIBOR and EURIBOR submission processes and did not have sufficient systems and controls in place. None of the most senior or executive managers were involved in the inappropriate conduct or were aware of it at the time. Nor did Rabobank engage in ‘lowballing’ (i.e., the artificial suppression of LIBOR submissions in order to present a more positive financial picture of the bank). Rabobank said it cooperated fully with all authorities, and the DNB, DPP, FCA, CFTC, DOJ and JFSA specifically acknowledged Rabobank’s cooperation.

Piet Moerland, chairman of Rabobank’s executive board, stated, “I sincerely regret that a number of Rabobank employees acted in an inappropriate manner. This should never have taken place at Rabobank. The conduct of these individuals, and the language of some of the individuals’ communications, has shocked me. Rabobank fully understands the sense of indignation that this will cause both within our organization and more broadly. Such behavior is entirely contrary to our core values, of which integrity is the most important. The public has to be able to trust that Rabobank employees operate with our core values in mind. That is why I have today decided that, as a matter of principle, it is appropriate for me to resign as chairman of the executive board with immediate effect.”

To read Rabobank’s full news release click here.