Japan banking regulator raps Rabobank for Libor manipulation

Tuesday, 29 Oct 2013 | 8:56 AM ET

TOKYO, Oct 29 (Reuters) - Japan's banking regulator said on Friday that it has ordered the Tokyo branch of Dutch lender Rabobank NV to bolster its compliance after finding that a trader had tried to manipulate the setting of yen Libor rates between May 2006 and August 2010.

The Financial Services Agency said in a statement that one trader and some of his colleagues in the Tokyo branch of Rabobank frequently asked submitters of yen Libor rates to submit rates in favour of their derivative transactions.

The FSA said it found the actions "seriously unjust and malicious" and that the bank's internal control systems had "serious deficiencies".

(Reporting by Nathan Layne; Editing by Edmund Klamann)