HARTFORD, Conn. (Legal Newsline) — Connecticut Attorney General George Jepsen has announced Barclays Bank PLC and Barclays Capital Inc. will pay $93.35 million in restitution to government and nonprofit entities after alleged manipulation of benchmark interest rates during the financial crisis.
During 2007 and 2008, Barclays’ managers allegedly instructed LIBOR rate submitters to artificially lower their submissions. This would put up an appearance that Barclays was not suffering from the recession. LIBOR is a benchmark interest rate that affects financial instruments.
"Our investigation has developed significant evidence that some banks, like Barclays, that were responsible for setting LIBOR rates intentionally manipulated LIBOR in order to protect their public image and to help the business side of their operations be more profitable," Jepsen said.
He noted his office’s belief that the conduct was unlawful and that his office will continue to hold banks accountable when they harm consumers.
"I appreciate and commend Barclays' cooperation in our investigation and in reaching this agreement to fully resolve our concerns against it,” Jepsen said.
Barclays will pay an additional $6.35 million to cover the costs and expenses of the case, which is still active.