Rabobank New Zealand says no local staff were involved in, or even aware of, the behaviour that saw its Dutch co-operative parent cough up €774 million (about NZ$1.3 billion) to settle regulatory probes into Libor and Euribor fixing.
"A number of employees inappropriately sought to influence certain Rabobank Libor and Euribor submissions between 2005 and 2010. Also, some employees inappropriately communicated with employees at other banks and brokers about certain Libor and Euribor submissions between 2005 and early 2011," Rabobank NZ says in its latest General Disclosure Statement.
"Thirty employees were involved in, aware of, or should have been aware of, the inappropriate conduct. Rabobank employs more than 60,000 people in 42 countries. No New Zealand-based employees were involved in or aware of the conduct."
Rabobank Nederland has struck deals with regulators in the Netherlands, Britain, the United States and Japan following their investigations into Rabobank's historical London Interbank Offered Rate (Libor) and Euro Interbank Offered Rate (Euribor) submission processes. Rabobank Nederland has agreed to pay the €774 million to settle. On top of this Piet Moerland has resigned as chairman of its board.
"Severe disciplinary measures have been taken against all of the employees engaged in inappropriate conduct and who were still at the bank at the time of the investigation," Rabobank NZ says. "Those employees who were involved in serious misconduct have had their contracts of employment brought to an end."
"Other disciplinary action has included, in different combinations, formal warnings, financial sanctions, and the removal of managerial responsibilities. Bonuses have been partly or entirely reclaimed for the period 2009-2012, in the total amount of €4.2 million."
"Rabobank Nederland has implemented additional systems and controls to govern its interest rate benchmark submission processes that reflect industry best practices, consistent with the most recent regulatory and banking industry guidance."
This article was first published in our email for paid subscribers on Friday morning. See here for more details and to subscribe.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.