Lloyds Banking Group is reportedly in advance stage of negotiations with the US and UK regulators to settle the probe that the bank allegedly manipulated London Interbank Offered Rate (Libor) benchmark interest rates.
Sources familiar with the discussions were quoted by the Wall Street Journal as saying that settlement talks have accelerated recently, and it is expected that regulators will announce a deal in the next few weeks.
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The sources further told the publication that the negotiations between Lloyds and regulators are still in progress and the size of the fine is still unclear.
Lloyds, 25% British government-owned bank, would become the seventh financial institution to settle the manipulated benchmark interest rates with US and British regulators.
A Lloyds spokesman was quoted by WSJ as saying, "Lloyds continues to receive requests for information from a number of government agencies with regard to their investigations into interbank offered rates (including Libor)."
"We are cooperating with those investigations. If required the group would update the market as appropriate," the spokesman told the publication.
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By GlobalDataHundreds of trillions of dollars of securities and loans are connected to the Libor, including $350trn in swaps and $10trn in loans, comprising auto and home loans, according to the Commodity Futures Trading Commission.
Even small inaccuracies in the Libor affect investment returns and borrowing costs for individuals, companies and professional investors.
