Billion dollar Libor fine set for Rabobank

RABOBANK could be fined $1bn (£615.8m) over accusations of Libor-rigging as soon as next week, settling with regulators in the UK, US, and its native Netherlands.

The charge, first reported in the Financial Times, would be the second biggest fine levied against a financial institution in the wake of the scandal.

Swiss giant UBS paid $1.5bn to regulators in their own country, as well as those in the US and UK at the end of last year.

Rabobank started off as a co-operative movement, and is one of the largest financial institutions in the Netherlands.

Spokesmen for the bank refused to comment on reports about the size of the fine last night.

Late last year, Rabobank was downgraded by Standard and Poor’s, with analysts citing exposure to a downturn in the Dutch economy.