Lloyds Banking Group (LBG) has agreed to pay £218m in fine to the US and UK regulators to resolve the British Bankers’ Association (BBA) London Interbank Offered Rate (LIBOR) and Sterling Repo Rate fixing charges.

The Financial Conduct Authority (FCA) levied a fine of £105m on Lloyds Bank plc (Lloyds) and Bank of Scotland plc (BoS), both part of LBG, for serious misconduct relating to the Special Liquidity Scheme (SLS), the Repo Rate benchmark and the London Interbank Offered Rate (LIBOR).

LBG has also entered into a two-year deferred prosecution agreement in relation to one count of wire fraud relating to the setting of LIBOR, as part of the settlement with the United States Department of Justice (DoJ).

In a statement, the British banking group accepted that the manipulation of submissions covered by the settlements took place between May 2006 and 2009. The lender claimed that all the individuals involved have either left the group, been suspended or are subject to disciplinary proceedings.

LBG chairman Lord Blackwell said: "The Board regards the actions of these individuals between 2006 and 2009 as completely unacceptable."

"Their behaviour involved a gross breach of trust and we condemn it without reservation. I have written to the Governor of the Bank of England to make clear we have a common view on this."

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With the recent settlement, the 25% UK-government owned lender joins several other banks to settle allegations or pay fines for alleged rigging of LIBOR, and other benchmark rates.