July 28, 2012

Dutch Central Bank DNB investigates Rabobank

DNB onderzoekt Rabobank (NOS, Dutch)

engl. translation:

The DNB, (Dutch central bank) investigates with support of of the financial markets authority (AFM) the role of the Rabobank in the Libor scandal. Sources confirmed that to the NOS. The investigation is running since last year.

DNB confirms that there is an investigation running about the creation of the Libor interest rate, but can't tell anything about the role of Rabobank. The Euribor interest rate is also under investigation. That's the European counterpart of the Libor rate of London. Besides that foreign oversights look into the role that Rabobank played in the Libor scandal.

The bank confirms that multiple oversights are looking into the case. A spokesperson says that the bank is fully cooperative.

The Rabobank belongs to a panel of banks that daily determines the Libor rate. That rate is known to be the base for uncounted credits and loans. Recently a scandal came to light when the British bank Barclays confessed to have rigged the rate. The bank settled the case with the British & American authorities with an amount equivalent of 370 million Euros. In other countries there are investigations, too.

This week the German minister of consumer protection called upon Deutsche Bank to come clean. "It cannot be that consumers have to pay the bills of traders who are manipulating interest rates without scruples."

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According to the [newspaper] Financieel Dagblad the Rabobank has discharged four employees in 2008 and 2011 who have been possibly involved in the scandal. The Rabobank didn't want to comment on the case.

The employees have allegedly communicated too high or just too low interest rates, because their colleagues on the trading floor had advantages from a Libor rate that was a bit higher or lower than everyone expected. With that approach they could achieve substantial profits.

last update=July 28th 2012

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