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
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
He noted his office’s belief that the conduct was unlawful
and that his office will continue to hold banks accountable when they harm
"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.