Washington, D.C. – The Commodity Futures Trading Commission (CFTC) has charged Société Générale S.A. with multiple violations related to the manipulation and false reporting of key benchmark interest rates, including the London Interbank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (Euribor). The alleged misconduct spanned over six years, from 2006 through mid-2012.
According to the CFTC’s order, Société Générale engaged in both attempted manipulation and the submission of false reports concerning U.S. Dollar, Yen, and Euro LIBOR, as well as Euribor. In some instances, the bank successfully manipulated Yen LIBOR. The charges also include aiding and abetting traders at another bank in their efforts to manipulate Euribor.
The CFTC found that Société Générale made benchmark submissions based on improper factors. From May 2010 through mid-2012, during the height of the Greek sovereign debt crisis, the bank allegedly submitted false reports for U.S. Dollar and Euro LIBOR, and Euribor, in an attempt to conceal its own borrowing difficulties and protect its reputation. These actions were reportedly directed by members of executive management, including the Chief Financial Officer, Head of Corporate Investment Banking, and the Global Head of Treasury.
Additionally, the CFTC alleges that Société Générale attempted to manipulate the setting of U.S. Dollar, Yen, and Euro LIBOR, and Euribor at other times. The investigation revealed that these attempts were successful in manipulating Yen LIBOR on certain occasions.
As a result of these findings, Société Générale has agreed to pay a $475 million civil monetary penalty. The order also requires the bank to cease and desist from further violations and implement specific undertakings to ensure the integrity of its future LIBOR, Euribor, and other benchmark interest rate submissions.
“Today’s action shows the CFTC’s continued commitment to ensuring the integrity of global benchmarks that impact the U.S. markets,” stated James McDonald, CFTC Director of Enforcement. “We have seen some market participants knowingly make false reports in an effort to increase their trading profits or misrepresent their financial health.”
LIBOR and Euribor are crucial global interest rate benchmarks used to price trillions of dollars in financial instruments, including U.S.-based futures and swaps. The integrity of these benchmarks is vital for markets, investors, and consumers worldwide.
Source: CFTC.gov
Related Federal Cases
- Federal Regulators, Loan-to-Deposit Ratio Manipulation, Washington … · Washington
- No Defendant Name Found, Shady Home Valuations Manipulation, Washin… · Washington
- Vivek Ramaswamy, Politician Snubs VP Slot, Washington DC, 2024 · Washington
- Vivek Ramaswamy Declines VP Offer, Politicizing Private Sector, US,… · Washington
- Joe Biden Condemns Corporate Price Fixing, Washington D.C., 2024 · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News