Lloyds Banking Group (LBG) is expected to pay a fine of between £200m and £300m to settle charges of rigging London Interbank Offered Rate (Libor).
Lloyds declined to comment on the timing or size of any settlement, saying only that it was "co-operating with investigations." It is expected to make an announcement to this effect before its results for the first six months of the year are out on 31 July.
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Lloyds will be the seventh financial institution to be fined by UK and US authorities following investigations into the Libor rigging scandal.
The Lloyds settlement is likely to include fines paid to the Commodity Futures Trading Commission and Department of Justice in the US and the Financial Conduct Authority in the UK.
The regulators, during their probe, found that the bank’s traders manipulated the Libor used to determine interest rates for trillions of dollars worth of financial products between 2006 and 2009.
The penalty for Lloyds comes more than two years after Libor manipulations at Barclays were exposed and the US and UK regulators imposed a monetary penalty of £290m on the bank in June 2012.
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By GlobalDataVarious other banks have also been indicted by the regulators, including Swiss bank UBS, Royal Bank of Scotland (RBS), Dutch bank Rabobank, and two money brokers – Icap and RP Martin.
The US and UK authorities are still investigating few banks including Deutsche Bank, Citigroup, HSBC and JPMorgan, about their role in possible manipulation of Libor.
