Department of Justice's first ever criminal antitrust charge of a corporation for trader-based market manipulation
The Antitrust Division and the Criminal Division of the Department of Justice have announced a deferred prosecution agreement with the Royal Bank of Scotland (RBS) for its role in the worldwide conspiracy to manipulate LIBOR.
In the agreement, RBS acknowledges its commission of wire fraud and antitrust violations. According to the facts stipulated to by RBS, the antitrust count was premised entirely on trader-to-trader agreements to submit false rates for use in setting the LIBOR for certain currencies. This deferred prosecution agreement marks the first time the Antitrust Division has held a financial services firm criminally liable under the antitrust laws for a trader-based market manipulation scheme.
Pursuant to the deferred prosecution agreement, the Department of Justice will file criminal wire fraud and antitrust charges against RBS for its admitted involvement in the LIBOR conspiracy, but it will dismiss those charges if RBS: (1) co-operates with the LIBOR investigation; (2) pays a criminal penalty of $150m (£97m); and (3) implements an enhanced compliance programme. The justice department entered this agreement in recognition of the ‘highly valuable information’ RBS has provided toward the advancement of the LIBOR investigation. The justice department further credited RBS for taking significant remedial measures, including the implementation of stronger controls and the termination of responsible individuals…
If you are registered and logged in to the site, click on the link below to read the rest of the Allen & Overy briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from The Lawyer
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.