New York, Other States Reach $100M Settlement With Barclays Bank
Barclays Bank has agreed to pay $100 million to 43 states and the District of Columbia to settle allegations it improperly set key interest rates almost a decade ago, affecting payments on investments.
Monday's settlement includes $93.5 million in restitution and costs of the investigation led by the New York and Connecticut attorneys general.
Authorities say that in the global financial crisis from 2007 to 2009 the British bank lowered rates to avoid the appearance that Barclays was in financial trouble. They also say that from 2005 to 2009 Barclays traders requested rates to benefit their trading positions.
New York Attorney General Eric Schneiderman says Barclays is the first of several banks under investigation by the states to resolve claims.
Barclays says the settlement is in the best interests of shareholders and clients.