Rabobank investigated in rate fraud case
In addition to 40 U.S. lawsuits against the Rabobank for rate fraud, a Dutch real estate business subpoenaed the bank for damages suffered due to fraud with the euribor and libor interest, announced the 'Follow The Money' website. The company claims it took out an interest rate derivative, that was based on the euribor interest rate.
The business claims to have suffered a loss of €750,000 because of Rabobank's manipulation, and wants the contract terminated and the damages reimbursed. The company's lawyer, Carel Abeln, expects more Dutch companies will step forward. A Rabobank spokesperson confirms the subpoena, but does not want to elaborate on the matter, other than report that the legal tug-of-war costs buckets full of money, and it may take years before everything is settled. Last year the Rabobank was fined €774 million for manipulation of the euribor and libor interest rates.
