SocGen reaches deals to end probes on rates

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June 4, 2018 8:56 AM

Frances second-biggest bank Societe Generale said Monday it had reached agreement with US and French authorities to settle inquiries into the rigging of Libor interest rates and its dealings in Libya.

The bank did not reveal how much it paid to end the cases, but said it had already provided for the amount in its accounts and that it would have "no impact on Societe Generale's results".

The bank said last month it had set aside one billion euros ($1.2 billion) to settle both the Libor and Libya disputes.

It said the agreements reached with the French financial prosecutor's office and the US Department of Justice would be submitted to the country's courts for approval on June 4 and June 5 respectively.

Societe Generale joins a host of other banks that have reached settlement with US tax authorities for attempting to manipulate the benchmark global interest rate known as Libor.

Barclays, Royal Bank of Scotland, Goldman Sachs and BNP Paribas are among other lenders that have been forced to pay large sums to avoid potentially embarrassing court cases.

The legal woes weighing on the lender were compounded by allegations that it channelled bribes to associates of slain Libyan dictator Moamer Kadhafi's son Seif al-Islam.

Last year, the Libya bribery case paid nearly a billion euros to settle a case brought by the Libya Investment Authority.

But it remained under investigation in the US and France over the affair.

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