The scandal over manipulation of an international financial benchmark widened Tuesday as authorities fined a Dutch global bank nearly $1.1 billion for rigging the closely-watched rate.
Rabobank became the fifth firm penalized for manipulating Libor — the London Interbank Offered Rate that's used to set the rates on trillions of dollars of mortgages, car loans, student loans and some complex financial derivatives. Libor rates cover multiple currencies worldwide for varying time periods. The bank also rigged rates for Euribor, a similar financial benchmark.
The rates are set each business day by the London-based representatives of global banks based on estimates of what they would expect to pay for short-term loans from each other in various monetary currencies.