Informe del Departamento de Estado USA sobre la Manipulación del Euribor por Rabobank

7/27/2019 Informe del Departamento de Estado USA sobre la Manipulacin del Euribor por Rabobank

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ATTACHMENTA

STATEMENT OF FACTS

This Statement ofFactsis incorporated by reference as part of the deferred-prosecution

agreement,dated October 29,2013,between theUnitedStatesDepartment of Justice, CriminalDivision,Fraud Section, theUnitedStatesDepartment of Justice,AntitrustDivision,and

CooperatieveCentrale Raiffeisen-BoerenleenbankB.A. ("Rabobank"). The partiesagreethat

thefollowing informationis true and accurate:

BACKGROUND

A. LIBOR and Euribor

1. Since its inception in approximately1986,the London InterbankOfferedRate("LIBOR")has been a benchmark interest rate used infinancialmarkets around the world.

Futures,options, swaps, and other derivativefinancialinstruments traded in the over-the-counter

market and onexchangesworldwide are settledbasedonLIBOR. The Bank ofInternational

Settlementshas estimated that in the second half of2009,for example, the notional amount of

over-the-counterinterest rate derivative contracts was valued at approximately $450trillion. In

addition,mortgages, credit cards, student loans, and other consumer lending products often use

LIBORas a reference rate.

2. LIBORis published under theauspiceso f theBritishBankers' Association

("BBA"),a trade associationwithover 200 member banks thataddresses issuesinvolving the

UnitedKingdombanking andfinancial services industries. TheB BA definesLIBOR as:

The rate atwhich anindividualContributorPanel bankcouldborrow funds, were it to do

soby asking for and then accepting inter-bankoffersinreasonablemarket size, justprior

to 11:00 [a.m.]Londontime.Thisdefinitionhas been in place since approximately1998.

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3. LIBORrateswere initially calculated fo r three currencies: theUnitedStates

Dollar,theBritishPound Sterling, and theJapaneseYen. Overtime,the use ofLIBOR

expanded,and benchmarkrateswere calculated for ten currencies, includingthe original three.

4. TheLIBOR for a given currency is the result of a calculationbasedupon

submissionsfroma panel of banks for that currency (the "Contributor Panel") selected by the

BBA. Each member of the Contributor Panel submits itsratesevery Londonbusinessday

throughelectronicmeansto Thomson Reuters, as an agent fo r theBBA, by 11:10a.m. Londontime. Once each Contributor Panel bank has submitted its rate, the contributedratesare ranked.

The highest and lowest quartiles are excludedfromthe calculation, and the middle two quartiles

(i.e.,50% of the submissions) are averaged to formulate the resulting LIBOR " f i x "or "setting"fo rthat particular currency andmaturity.

5. TheLIBOR contributionof each Contributor Panel bank is submitted to between

two and fivedecimal places, and theLIBORfix is rounded, i fnecessary,to fivedecimal places.

In the context of measuring interestrates,one"basispoint" (or "bp") is one-hundredth of one

percent(0.01%).

6. Thomson Reuters calculates and publishes therateseachbusinessday by

approximately 11:30a.m. Londontime. Fifteenmaturities (or "tenors") are quoted for eachcurrency, rangingfromovernight to twelve months. The publishedratesare made available

worldwideby Thomson Reuters and other data vendors through electronicmeansand through a

varietyofinformationsources. Inadditionto theLIBORfix resultingfromthe calculation,

Thomson Reuters publishes each Contributor Panel bank's submittedratesalongwith thenames

of the banks.

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7. Accordingto theBBA, eachContributorPanel bank must submit its ratewithout

referencetoratescontributed by otherContributorPanel banks. Thebasisf or aContributor

Panelbank's submission, according to aclarificationtheBBA issued inJune2008, must be therateatwhichmembers o f the bank's staffprimarilyresponsible for management o f the bank's

cash,rather than the bank's derivative tradingbook, consider that the bank canborrowunsecured

inter-bank fundsi n theLondonmoney market. Further, according to theBBA, aContributor

Panel bank may notcontributea rate based on thepricingof anyderivative financialinstrument.

Inotherwords,aContributorPanel bank'sLIBOR submissions should not beinfluencedby its

motiveto maximizeprofitorminimizelossesin derivatives transactions tiedtoLIBOR.

8. The ContributorPanel fo rUnited StatesDollar ("Dollar") LIBOR fromat least

2005 through2010was comprised of 16 banks, including Rabobank. Presently, there are18bankson theDollarContributorPanel, includingRabobank. Fromat least 2005 to the present,

Rabobank has also been a member of the ContributorPanelfo rPoundSterling LIBOR.

Presently, there are 16banks on the PoundSterlingLIBOR ContributorPanel, includingRabobank. Rabobank was a member of theContributorPanel fo r Yen LIBOR untilJune2012.TheContributorPanel fo r YenLIBOR fromat least 2006 through2010was comprised of 16banks,includingRabobank. Presently, there are 13banks on the YenLIBOR ContributorPanel.

9. Rabobank was also a member of theContributorPanel fo rthe Euro Interbank

OfferedRate ("Euribor") untilJanuary 2013. Euriboris a reference rate overseen by the

EuropeanBankingFederation("EBF"), whichis based in Brussels,Belgium. Since 2005, the

Euribor ContributorPanel has been comprised ofapproximately42 to 48 banks. Euriboris the

rateatwhichEuro interbanktermdepositswithinthe Euro zone are expected to beofferedbyoneprime bank to another, at 11:00a.m. Brussels time.

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10. ThomsonReuters,as anagentof the EBF,calculates and publishes the Euriborrateseach businessday. Each Euribor ContributorPanelbanlc submits its contributedrateto

ThomsonReutersthrough electronicmeans,and then the contributedratesare ranked. The

highestand lowest 15%o fal l thequotes are excluded from the calculation, and the remainingrates(i.e., the middle 70%) are averagedto formulate the resulting Euriborf ixf oreachtenor.

Thepublished rates,and eachContributorPanelbank's submitted rates,are made available

worldwidethrough electronic meansand through a variety ofinformationsources.

11 . Becauseof the widespread use ofLIBOR and other benchmark interest ratesin

financialmarkets,these ratesplay a fundamentally important role in financialsystems around the

world.

B. Eurodollar Futures Contracts andInterest Rate Swaps

12. Eurodollar futures contracts are traded on the Chicago Mercanti leExchange("CME"), and are settled basedonLIBOR. Eurodollar futures contracts are highl yliquid, and

eachhas a notional value o f $1million. A "Eurodollar" is a Dollar deposit with a banlc outside

of the UnitedStates. A Eurodollar futures contract is essentially the interest that woul d be paid

ona Eurodollar deposit of$1millionfor a term ofthreemonths. Prior to the settlement date,the

priceo f a 3-monthEurodol lar futures contract is an indication of the market's prediction o f the3-monthDollarLIBORon its settlement date. The actual settlement price of a 3-month contract

is calculated as 100less the 3-month DollarLIBORon the settlement date. Most Eurodollarfuturescontracts settleon four quarterly International Monetary Market( " I M M " ) dates,whicharethe third WednesdayofMarch,June, September,andDecember. The last tradingdays are

thesecondLondon bankbusinessday prior to the thirdWednesday(i.e., usually Monday) in

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thosemonths. In 2009, according to the Futures Industry Association,more than 437 million

Eurodollarfutures contracts were traded on the CME.13. An interest rate swap ("swap") is afinancialderivative instrument inwhichtwo

partiesagreeto exchange interest rate cash flows. If , fo r example, a party has a transaction in

which it pays a fixedrate of interest but wishes to pay afloatingrate of interesttiedto a

referencerate, it can enter intoan interest rate swap to exchange its fixed rateobligationfor a

floatingrate one. Commonly,f or example, Party A pays a fixedrate to Party B,whileParty B

paysafloatinginterest rate to Party A indexed to a reference rate like LIBOR. There is no

exchangeo fprincipal amounts,which are commonly referred to as the "notional"amounts of the

swap transactions. Interest rate swaps are traded over-the-counter; in other words, they are

negotiated in transactions between counterparties and are not traded on exchanges.

C. Rabobank

14. Rabobank is afinancialservices corporationwith headquarters located in Utrecht,theNetherlands. Rabobank is structured as a cooperative. Rabobank "Member Banks" are

independentcooperatives that are members of a centralizedentitycalled Rabobank Nederland (in

theNetherlands) and RabobankInternational (outside of the Netherlands) (collectively,

"Rabobank"). Inadditionto supporting the Rabobank Member Banks, Rabobankoperatesits

ownbanking business and conducts otheractivitiessuch as supervising the Rabobank Member

Bankson behalf of financial regulators. Rabobank has bankingdivisionsand branches around

theworld, including in theUnitedStates,with itsUnitedStatesbranch headquartered in New

York. Rabobank employs derivatives traders throughout theworld- including in NewYork,

London,Utrecht,Tokyo,HongKong,and Singapore - who trade financialinstrumentstiedto

LIBOR andEuribor, including interest rate swaps and Eurodollar futures contracts ("swaps

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traders"). Employees on Rabobank's money marketsdesksi nLondonand Utrecht have been

responsible forcontributingRabobank's LIBOR and Euribor submissions ("submitters").

Rabobank'sDollarLIBORand YenLIBORsubmissions were made by submitters inLondon

untilDecember 2008, and by submitters in Utrecht starting in January 2009; Rabobank's Pound

SterlingLIBORsubmissions have always been made by submitters in London; Rabobank's

Euriborsubmissions have always been made by submitters in Utrecht.

RABOBANK'S MANIPULATIONOF ITSLIBOR AND EURIBOR SUBMISSIONS

SwapsTraders' Requestsfor Favorable Settings

Swaps Traders Requests Within Rabobank15. Fromas early as 2005 through at least November2010,certain Rabobank swaps

tradersrequested that certain RabobankLIBOR and Euribor submitters submitLIBORand

Euriborcontributionsthatwould benefitthe traders' trading positions, rather thanratesthat

complied with the definitionso fLIBOR andEuribor. The swaps traders either requested a

particularLIBORor Euriborcontributionfor a particular tenor and currency, or requested that

therate submitter contribute a rate higher,lower,or unchanged fo r a particular tenor and

currency. The swaps traders made theserequestsvia electronicmessages,telephone

conversations, and in-person conversations. TheLIBORand Euribor submitters agreed to

accommodate, and did in fact accommodate, the swaps traders' requestsand directions for

favorableLIBORand Euribor submissions on numerous occasions.

A. U.S.Dollar LIBOR

16. Fromat least as early as September 2005 through approximately December 2008,inNewYork, London,and Utrecht,multipleRabobankDollarswaps traders made frequent

requestsfo r favorableDollarLIBORcontributionsto the RabobankDollarLIBORsubmitters on

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theLondon money marketsdesk. Rabobank Dollar LIBOR submitters accommodated the

requestson numerous occasions and submitted Rabobank's DollarLIBOR contributions

consistentwith therequests.

17. For example, on Wednesday, October 17, 2007, a U.S.Dollar swapstrader("Trader-1")emailed the Rabobank U.S.Dollar LIBOR submitter("Submitter-1"):"A nice low1month fo r therestof the weekpleasematey.Cheers."1 Rabobank's submissions for therestoftheweek were consistent with thisrequest. That day, Rabobank's 1-month U.S.Dollar LIBOR

submission dropped fourbasispointswhereastheresto f the ContributorPanel's submissions

either remained unchanged or dropped one or twobasispointsfromthe previous day. The day

before therequest,Rabobank's 1-monthU.S.DollarLIBOR submission hadbeenthe fifthlowest submission o f the banks on the Contributor Panel. Immediately after thisrequestf or a

low submission, Rabobank's 1-month LIBOR submission sankto the lowest submission of any

bankon the Contributor Panel. On Thursday, October 18, 2007, Rabobank's 1-month

submissionwas tiedfor the second lowest on the Contributor Panel, and on Friday, October 19,

2007, Rabobank's 1-monthsubmission was again the lowest submission of any bank of theContributorPanel.

18. AccordingtomultipleRabobank employees, Trader-1and atleastone other U.S.DollarLIBOR swaps trader alsomaderegular verbalrequeststo the submitters for submissions

thatwould benefit their positions.

19. Accommodating suchrequestsfromtraders was a regular part of theratesettingprocessat Rabobank. On November 15, 2007, another Rabobank submitter ("Submitter-9")explained toSubmitter-1:"The fixinh should be done bycashdeskin agreement with deriv. I do1 Quotes are as in the original andhavenotbeencorrected for spel ling or grammar. Where

entiresentenceswere capitalized in theoriginal,standard capitalization ruleshave beenapplied

to improve readability.

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the fixing I ask swapdeskwhat they have." Submitter-1replied: "[Trader-1] had big fixing sowe help him today," and fu rther explained: " i am lowbecause[Trader-1] has fixing . . igo higher

tomorrow."

20. In another exchange, on September 16, 2008, Trader-1 wrote to the backup U.S.

DollarLIBORsubmitter ("Submitter-2")with the subject line: " I don'twanttohavea row aboutit [Submitter-2] but can't understand why you were such anarsethis morning?" In the body of

themessage,Trader-1pastedtheLIBOR submissions fo r 8 banks, includingRabobank, and

stated:"Beforejustifyingfromacashperspective where the truerateshould be etc, I ,and you,

knowthat i fyouwere short of1month fixing you'dhaveput in a mi d '60's LIBOR.P+L wise I

couldn'tgive a fack but I just can't get my head around why you were being such anarse."

Submitter-2 replied: "Mate I had no intention to be or desire to be , Ihaveno upside upseting

youor setting the libortoohigh,"continuing: " i honestly thought and still dothink2.78 was fair,obviuosly fromur perspective nearer2.70wouldhavehelped and I apologise for that.. . . i knew

you tryingto broke me to anextent, but as you know anything lowerfrommewould onlyhave

helped by l-2bp," and adding: "So Iwould rather we move onfromthis , and anything u need

torn tellme again and i ll try mybest."

21 . As another example, on the morning ofMonday,August 13,2007, another U.S.Dollar Trader ("Trader-2")messaged Submitter-1:"High3s and 6spis today mate (esp 6mths!!)i f uwouldbe so kind..Gotta make money somehow!" 2 Submitter-1 replied:"cool.." Trader-2

messagedback:"Cheers[Submitter-1]..Every little helps!" That day, Rabobank's 3-month U.S.

DollarLIBOR submission went down twobasispoints,whilethe other banks in the Contributor

Panel ranged fromdecreasing their submissions bysevenbasispoints to increasing them by

2 "3s" and "3m" refer to the 3-monthLIBOR tenor. Other tenors are commonly referenced in a

similar manner such as" I s " and " l m "to refer to the 1-monthLIBOR tenor, includingthe use of"w"to refer to weeklong tenors.



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sevenbasis points. Rabobank's submission wentfrombeingtied for the seventh highest

submission on the previous day to beingtied fo r the fifth highest submission. Rabobank's 6-

monthU.S.DollarLIBORsubmission went up by onebasispointfrom its previous submission,from5.40 to 5.41,whilethe other banks' submissions remained constant, on average. Rabobank

went f rombeingtied fo r thethird lowest submission on the Contributor Panel on Friday, August

10,2007, to making the second highest submission of any bank on the Contributor Panel.22. Later thatsameday, Trader-2messagedSubmitter-1:"where do u see 6m L I B O R

tomorrowpis?" Submitter-1 wrote back: "where do youliketo see it, is more the question?"

Trader-2 responded: "H A A A ,tryingto price a deal,couldmake/lose atidy amount of cash!!"

Submitter-1replied: "arrh I see .. at moment 5.40 again but who knows ." Trader-2 stated: "Ok

cheersmate." Later that day, Trader-2messagedSubmitter-1again, stating: "We've dealt. . .gonnaneed africkinhigh 6mthfix tomorrowi f okwith u . . . 5.42?" Submitter-1 replied: "sendmean emailmatey fo r tomorrow..my brain can't cope !!" Trader-2 responded: "Tellme aboutit... Cant believe how this market ismoving . . . I ' l l send am a i l , writea post it not aswell, its750mio 6mthf i x Couldbe risky!" The next day, August 14, 2007, a senior Rabobank traderandTrader-2's supervisor ("Trader-3"),messaged Submitter-1 's supervisor ("Submitter-3"),who

servedas Rabobank's GlobalHead ofLiquidityand Finance and the head o f Rabobank's money

markets desk inLondon:"any feelingfo r libors today?specifically, 6mth." Submitter-3 wrote

back:" hi 1,2,3 month ...59 ,56 , 53.5 .. .6 month 42 , ithinkthats what [Trader-2]needs."

Trader-3responded: "i t' s actually me thatneedsit , but thanks." Submitter-3 replied: "ahh

[Trader-2], taking all the credit " That day, as requested, Rabobank's 6-month U.S .DollarLIBORsubmission was 5.42, the highest submission of any bank on the Contributor Panel.

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23. In addition to accommodating swapstrader requests,certain submitters alsotooktheir own trading positions into account at times. For instance, onSeptember 19,2007,Submitter-1told Submitter-9: "today ihavefixing so am low on the 3mth . . ." That day,

Rabobank's3-month U.S. DollarLIBOR submission went down 39basispoints,whereasthe

average submission on the ContributorPanelwent down approximately 34basispoints.

Rabobank's submission went frombeing tied for the third highest submission on the previous

day to being tied for the lowest submission on the Contributor Panel.

24. At times, submitters had tobalancecompetingrequests,eitherbecausemultiple

Rabobankswapstradershad trading positions that conflictedwith eachother orbecauseaswaps

trader's requestconflictedwith the submitter's own trading pos ition. For instance, on March17,2008,Trader-2 messagedSubmitter-1 and asked:"where r u gonna f i x3m today, any idea?"Submitter-1 replied: "no ideamate ..iveonlybeenin10mins.. you want me to ask about ..don'tthinkwehaveanything in 3's so hap[p[y to help." Trader-2 wrote back: "yes, Ihave3kfixing

today,,,highere the better." Submitter-1responded:"okmate ..[a specificswapsbroker] is going

56area.." Trader-2 replied: "go 60pis " Submitter-1 wrote back: "sure." Later in theconversation,Trader-2 asked:"can u go high Is aswell todaypis." Submitter-1 wrote back: "me& [Submitter-2]havegot a couple ofyardsfixingtoday ..howmuch you got in itmate.. notsurewemakeahugedifference anyway ." Trader-2 wrote back: "2 bi o. .. jus t 3s then matey."

Submitter-1 replied: "okcool. . i l l go f l a tto what [theswapsbroker]saysas probably won'tmakehuge d i f f . " That day, asrequested, Rabobank's3-month U.S. DollarLIBOR submissionwas2.60, tied for the highest submission of any bank on the Contributor Panel. On the previous

trading day,Rabobank'ssubmission had beentied for the nin th highest submission. Rabobank's

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1-monthLIBORsubmission went down 22basispoints, approximately the sameas theaveragechangein the submissions of the otherbankson the Contr ibutor Panel.

25. Likewise, on March 12, 2008, Trader-2 wrote to Submitter-2 and asked:"High 3s

and6spis tomorrow." Submitter-2 wrote back: "Yes ..Low Is though." Trader-2 responded:"Low is isfine,Ihavea lot in 3s and 6s tho (about 75k/bp) "3 On March 13, 2008,Rabobank's3-monthU.S.DollarLIBOR submission declined by two and ahalfbasispoints,whereasthe

other panel banks' submissions decreasedby approximately fivebasispoints onaverage.

Rabobank'ssubmission wentfrombeing the lowest of any bank on the Contributor Panel on

March12, 2008, to being only the fifth lowest submission. Likewise,Rabobank's6-month U.S.

DollarLIBOR submission declined by sixbasispoints,whereasthe other panel banks'

submissionsdecreasedby approximately eight and ahalfbasispoints onaverage. Rabobank's

submissionwentfrombeing the second lowest submission of any bank on the Contributor Panel

onMarch 12, 2008, to being tied as the sixth lowest submission. In contrast, Rabobank's1-

monthU.S.Dollar LIBOR submission declined by five basispoints,whereas the other panel

banks' submissions decreasedby approximately four and three-quartersbasispoints onaverage.

Rabobank'ssubmission was the lowest submission of any bank on the Contributor Panel on both

March12, 2008, and March13, 2008.26. On another occasion, onSeptember26, 2007, Trader-2 wrote Submitter-2 and

Submitter-3with the subject line: "High3s tomorrowpisgents." Submitter-2 wrote back:"What 21 hahahahha." Trader-2 replied:" I ' l l get u [Submitter-2]!!" Submitter-2 wrote:"I 'm setting ittorn,"towhich Trader-2 responded: "25 (or higher)wouldbe great CHEERS."

Submitter-2 responded: " U do realise [Trader-1] wants the opposite , i l l do mybestmate."

3 "75k/bp" refers to aprofit/lossexposureof $75,000 perbasispointchangein the final fixingof

theU.S.DollarLIBORrate(i.e.,f or everybasispointincreaseordecreasein the U.S.Dollar

LIBOR fixing, the tradewouldmake or lose an additional $75,000 respectively).

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Trader-2 replied: "Bugger.. We fixedat 24, anything higher is a bonus!" On September 27,

2007, Rabobank's 3-month U.S.DollarLIBORsubmission was 5.24, an increase of fivebasis

points,whereas the other panel banks' submissions increased by approximately threebasispoints

onaverage. Rabobank's submission wentfrombeingtiedas the twelfthhighest submission on

theContributor Panel on the previous day to beingtiedas the fifth highest submission on the

Contributor Panel.

27. On another occasion, on August15,2006, Trader-2 wrote to Submitter-1 andstated: " I have loads ofI sand 3mth fixesrollingthis week(sell offcameat the wrongtime)!!I f

[Trader-1]doesnt hv any preferences, can I have low Isand 3s the next few dayspis matey..."Submitter-1replied: "His exact word's are . . i don't give af*ck. '"

28. Submitter-3 was aware of the conduct on the desk he supervised,playingan

active role in it and sometimes handlingswapstrader requestshimself. For example, on October

6,2006, Trader-2 wrote to Submitter-3:"Hello Skipper, can u put 3s at 37 for me tomorrowpis.. . many thanks." Submitter-3 wrote back: "Never in doubt!" That day, Rabobank's 3-month

U.S.DollarLIBOR submission was 5.37, as requested. On November 29, 2006, Trader-2 again

wrote to Submitter-3:"Himate, lowIshigh 3sLIBORpis !!! Donttell[Trader-1] haahaaaaaaa.Soldthe market today doooooohhhh!" Submitter-3 replied: "ok mate ,w i l ldo myb es t.. .speaklater." That day, Rabobank's 1-month U.S.DollarLIBOR submission went up by two and ahalf

basis points. Inlightofchangesin the submissions of other banks on theContributorPanel,

however, Rabobank's submission wentfrombeingtiedwith the submissions ofthirteenother

bankson the Contributor Panel for the second highest submission to beingtied for thetwelfth

highest submission. Rabobank's 3-month U.S.DollarLIBOR submission was unchanged from

theprevious day. Givenchangesin the submissions of other banks on the Contributor Panel,

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however, Rabobank's submission wentfrombeingtied fo r thethirdhighest submission on the

previousday to beingtied for the second highest on November 29, 2006. Twodayslater, on

December1, 2006, Trader-2 again wrote to Submitter-3: "Appreciate 3s go down, but ahigh 3s

todaywouldbe nice...cheerschief." Submitter-3 wrote back: " I am fastturning into your

LIBOR bitch!!!!" Trader-2 replied:"Justfriendlyencouragement that's a l l , appreciate thehelp." Submitter-3 wrote back: "No worries mate , glad to help ....Wejuststuffed ourselveswith good olpie , mash nlicker !!"

29. At other times, Submitter-3would referswapstraderrequeststo his subordinates.

Forexample, on March16,2007, Trader-2 asked Submitter-3: "one lastthing,high 3mth liboronmondaypis." Submitter-3 wrote back: "okw i l l tellSubmitter-1."

B. Yen LIBOR

30. From in or around May 2006, through in or around November 2010, several

RabobankYenswaps traders inTokyo,and to alesserextent HongKong andSingapore,madefrequent and regularrequestsfor favorable YenLIBORcontributions to the Rabobank Yen

LIBORsubmitters on the London and Utrecht money marketsdesks. Rabobanlc YenLIBOR

submitters accommodated therequestson numerous occasions.

3 1 . For example, on October 11,2006, a YenLIBOR trader ("Trader-4") emailedRabobank'sYenLIBORsubmitter ("Submitter-4")with the subject line:"3mths." In the emai l,

Trader-4wrote: " I f in2 minds on 3mth yen libortoday, prefer u to go higher rather than lower

mate i fyou've got ntg init." Submitter-4 replied: "no prob mate...whatu want me to set mate43?....44?" Trader-4 wrote back: "0.44 i fyou cankeepa straightface.." Submitter-4 responded:"no prob mate 44 it is !" That day, as requested, Rabobank's 3-month YenLIBOR submission

was0.44, an increaseo f onebasispoint. Rabobank's submission wentfrombeingtied as the

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f i f thhighest submission on the Contributor Panel on the previous day to being tiedas the second

highest submission on the Contributor Panel.

32. Two weeks later, on Wednesday, October 25, 2006, Trader-4 emailed the backup

Yen LIBOR submitter ("Submitter-5")with the subjectline:"libors." In the email, Trader-4

wrote: " I have a few chunkyrollsin the 3mthyen libors in the next few days. I don' t want tocompromise yourintegrity.,but i fyo u've got ntg in it maybe asmidgelower today (actuallyshud be anyway as futures are a abt 1higher anyway) and thenhighf or Thurs andF riwould be

greatthen Iwil l be back i n my box fo r another 2 weeks." Submitter-5 responded: "sureno

problemmate i fyouhave a sec can i have the lvlspise." That day, Rabobank's 3-month YenLIBORsubmission was consistent with Trader-4's request, decreasing onebasispointfrom0.45

to0.44, whereas the rest of the Contributor Panel stayed approximately thesameon average.

Rabobank's submission wentfrombeingtiedas the fourthhighest submission on the Contributor

Panelon the previous day to beingtiedas thetwelfthhighest submission on the Contributor

Panel. On the next day, Thursday, October 26, 2006, Rabobank's contributionwas again

consistentwith Trader-4's request, increasing onebasispoint,from0.44 to 0.45, whereas the rest

of theContributorPanel either remained unchanged ordecreasedtheir submissions. Rabobank's

submission wentfrombeingtiedas thetwelfthhighest submission on the Contributor Panel to

beingtiedas the second highest submission on the Contributor Panel. The next day, Friday,

October 27, 2006, Rabobank's contributionwas again consistent with Trader-4's request,remainingat 0.45, whereas the rest of theContributorPaneldecreasedits submissions by an

averageo fapproximatelyhalf abasispoint. Rabobank's submission remainedtiedas the second


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33. Two weeks later, on November 8, 2006, Trader-4 wrote to Submitter-4: "Got a

fewbig 3mthfixingsin next 2 days, anychanceyou cud bump it up a couple? What do u

actuallythink 3mth today 45.25-45.5 ish?" Submitter-4 wrote back: " w i l l set themhighand dry

skip!" The next day, Trader-4 wrote back: "Thx skip, 1 more today - onlyhas to be 3mths,othersdo as youpis,then im relativelysquarefo r awhile.." Submitter-4 replied: "no prob matewill set ithighagain...is46 lv l ok or higher?" On both days, Rabobank's 3-month Yen LIBORsubmissionswere consistent withTrader-4's request. On November 8, 2006, Rabobank's

submission was 0.46, anincreaseof threebasispoints fromthe previousday's submission,

whereasthe restof the Contributor Panel stayed approximately thesameonaverage.

Rabobank's submission wentfrombeingtiedas the second lowest submission on the Contributor

Panelon the previous day to beingtiedas thethirdhighest submission on the Contributor Panel.

OnNovember 9, 2006, Rabobank's submission was again 0.46, keeping Rabobank's submission

tiedas the thirdhighest submission on the Contributor Panel.

34. Requestswere regularly accommodated bymultipleYenLIBOR submitters on

thedesk,and when one submitter on thedeskwas out,swapstraders knew to make theirrequests

toothers on thedesktoensurethat theirrequestswould be accommodated. For example, on

February9, 2007, Trader-4 emailed Submitter-4with the subject line:"3mth libors." In themessage,Trader-4 wrote: "Mate, be great if you couldkeepyour 3 mth liborunchanged today i f

you can get away withit and its okwithyour posy." Submitter-4 replied: "you need ahigh

one? no prob skip." Trader-4 wrote back: "Yespismate, myonlymajorfixingf or awhile,cheers." Submitter-4 replied:" o f f next week mate so i f u need any libor requestsnext week -

give [Submitter-5] a shout." That day, as requested, Rabobank's 3-month YenLIBOR

submission was 0.55, thesameas the previous day,tiedas the highest submission on the

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ContributorPanel. The next week, on February 14,2007, Trader-4 wrote to Submitter-5with thesubjectline"6m yen libor,"and asked: "Can youkeepyour 6m yen liborat 0.62 today i fpossas

havea large fixingtoday?" Submitter-5 wrote back:"surewi l l do mate." That day, as

requested,Rabobank's 6-month YenLIBOR submission remained at 0.62. Rabobank's

submissionwent frombeingtiedas thethirdhighest submission on the Contributor Panel on the

previousday to being the highest submission on the Contributor Panel.

35. In addition to accommodating swapstrader requests,certain Rabobank Yen

LIBORsubmitters also took their own trading positions into account. At times, submitters also

had to balance competingrequestswhenmultipleRabobank swapstraders had trading positions

thatconflictedwitheachother. For example, on Monday, March 26, 2007, Trader-4 emailed

Submitter-4:"Onlibors,this weekhaveafairbit of 6mthsrolling off, I am short so if you can

discreetlydrop your 6m by 1-2 bpwithoutany troublewould be great i fnot no probs mate"

and " I m happy fo r you tokeepyour 1 mthhighas both [another Yenswapstrader ("Trader-5")]and I are long afairbit ofthosetill Wed." Submitter-4 wrote back: "sureno prob - all my stuff

ismainly 1 mth so wi l l keepthathigh and drop 6's cheers." On Tuesday, March 27, 2007, as

requested,Rabobank's 6-month YenLIBOR submissiondecreasedtwobasispoints,from0.74

to 0.72. Rabobank's submission wentfrombeingtied as the second highest submission on the

ContributorPanel on the previous day to beingtiedas the eighth highest submission on the

ContributorPanel. Likewise,Rabobank's 1-monthYenLIBOR submissiondecreased threebasispoints,whereasthe other panel banks' submissions decreasedby approximately four and

three-quartersbasispoints onaverage. As a result, Rabobank's submission wentfrombeingtied

asthe second highest submission on the Contributor Panel on the previous day to being tied as

thehighest submission on the Contributor Panel.

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36. Likewise , onSeptember 14, 2007, Trader-4 wrote to Submitter-4, and info rmed

him:"Im short 3ml today and [Trader-5] is long so don't let himpressureyou to put i t high and I

wontpressureyou to put it low - leave it to you to decide the right levels." Submitter-4 replied:

"Noworries skip -I ' l llook afteryou." OnJune15, 2007, Trader-5 wrote to Submitter-4 and

asked:" H imatewhat did u put for 3mth and 6mthlibor today?" Submitter-4 wrote back: "3m

756m 87. [Trader-4] wanted a high one." Trader-5 wrote back: "Really??? [Trader-4] should

havetoldme this, I wanted them to be lower."

37. Rabobank'sYenLIBOR submitters accommodated swapstraders' requeststo the

pointofallowingtheswapstraderssignificant influence over the settingprocess,particularly

Trader-5,whomaderegularrequeststoRabobank's London-based Yensetters. For example, on

August 21, 2007, Trader-5 emailed Submitter-5 with the subject line"LIBORS"and asked: " I f

you can make 1monthLIBORhigher today, thatwould be a help mate." Submitter-5 replied:

"Okwhat level youlookingat ?" Trader-5 wrote back: " I fpossible, woud prefer it to be 0.82%."

Submitter-5wrote back: "O kmatewi l l do." Trader-5 then wrote: "Thank you for help mate.

Whatdo youguesstdy 's 3m ad 6m jpy libors? Higher or lower?" Submitter-5 responded:

"Hahahyoutellme I m not really watching the yen libors all mystuffgoing a bit mad at mom."

Trader-5 laterasked:"Where are you setting 3mth and 6mthlibortoday?" Submitter-5 repeated:

"You tellme what you wantmatehe has nof ixing at mom." Trader-5 responded: " l m 0.82,""3m 1.00,""6m 1.06:"" I fyou can putthose rates,,,,would be nice mate." Submitter-5 thenoffered:"Great wi l l do i fyou want to give me themeachday i l linput whatever you wantmate

okcheers." That day, asrequested, Rabobank's 1-month YenLIBOR submission was 0.82, an

increaseoffourbasispoints. Rabobank'ssubmission went frombeing tied as the eleventh

highestsubmission on the Contributor Panel on the previous day to being tied as the second

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highestsubmission on the Contributor Panel. Likewise, as requested, Rabobank's 3-month Yen

LIBORsubmission was 1.00, and its 6-month YenLIBOR submission was 1.06.

38. As another example, on August 24, 2007, Trader-5 emailed Submitter-5with thesubject line "libors"and stated: " I would like today's 6mliborlower today mate," to which

Submitter-5 replied: "Ok mate whatleveldo you want mate." Later that day, Trader-5 emailed

Submitter-5 again and asked: "Whatrate did you input fo r libors?" Submitter-5 responded:

"HimmateIhavenot done them what do u want ." Trader-5 wrote back: " l m 0.78," "3m 0.99,""6m 1.00." Later that day, after the YenLIBOR submissions and fixinghadbeenpublished,

Trader-5 replied again: "Ops. .. Sorry that I meant 6m is 1.10....Not 1.00%. Justbit surprisedwhen I saw our 6mlibor price." That day, as requested, Rabobank's 1-monthYenLIBORsubmission was 0.78, and its 3-month YenLIBOR submission was 0.99. Rabobank's 6-month

YenLIBOR submission was 1.00, consistent withTrader-5's mistakenrequest,afifteenbasis

pointdecreasefromthe previousday'ssubmission,whereasthe other panel banks' submissions

decreasedby approximatelyhalfabasispoint onaverage.

39. At times, trader input resulted in Rabobank submitting YenLIBORsthat the Yen

LIBOR submitters knew were incorrect. For example, on September 21, 2007, Trader-5 emailed

Submitter-4with the subject line "libors,"writing:"Wehre do youthink today's liborsare? I f

youcan, Iwould like l m t h libors higher today." Submitter-4 replied: "Bookies reckon l msetsat .85." Trader-5 wrote back: " I havesomefixingsin 1 mth sowould appreciate i fyoucan put it

higher mate." Submitter-4 replied: "No prob mate let me know yourlevel." Trader-5

responded:"Wud be nice i fyou could put 0.90% forlmth cheers." Submitter-4 wrote back:

"Sureno prob. I ' l lprobably get a few phone calls but no worries mate!" Trader-5 replied: " I f

youmay get a few phone calls then put 0.88% then." Submitter-4 responded: "D on 't worry mate

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- there'sbigger crooks in the market than us guys!" That day, as requested, Rabobank's 1-

month YenLIBOR submission was 0.90, anincreaseo fsevenbasispoints fromits previoussubmission,whereasthe other panel banks' submissions decreasedby approximately ahalf of a

basispoint onaverage. Rabobank's submission wentfrombeingtiedas the tenth highest

submission on the Contributor Panel on the previous day to being the highest submission on the

ContributorPanel.

40. Similarly,on October 17, 2008, Trader-5 emailed Submitter-4, and asked: " I f

possible, could youkeepsetting 6mliborat 0.80% for awhileplease?" Submitter-4 wrote back:

"H i mate - oh yes

we are now setting all liborssignificantlyunder the market levels."

4 1 . On March19,2008, Trader-5 emailed Submitter-4withthe subject line"LIBORs,"and wrote: "Wehaveloads of 6mthfixingstoday. I fpossible, could you set 6m libor

to 1.10% please?We don'thaveparticular interest in other libors." Submitter-4 wrote back:

"Sryjust toconfirm6m you want at1.10???Okw i l ldo that but Iwi l lprob get a phone callat Iset02 yesterday and brokers reckon everything a littlelower today," continuing:"Butwi l l set

yourlevel cheers." Trader-5 wrote back:"Actually,,, [another Yen Trader and Trader-5's

supervisor ("Trader-6")]would like6m to be higher today... . I fitis not appropriate, it is fine

mate,Iwi l l explain the situation tohim. Hewi l lunderstand the situation. He is on holiday

today. He just called me up in this morning to ask you to put libors higher." Submitter-4

replied: "Wellits no prob mate - 1 can set i t thathigh, itwi l l be quitefunnyto see the reaction!"Trader-5wrote back: " Ifeltthat it was alittlefunnyso,,,, i fyou can put alittlehigher 6mth up to

the lv l you feel comfortable,lbpor a couple of bpwouldbe fine f or him mate." Submitter-4wroteback: "No worres mate - I ' l lset it at1.10..." That day, as requested, Rabobank's 6-monthYenLIBOR submission was 1.10,an increaseo f eightbasispoints fromits previous submission

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of 1.02,whereas the other panel banks' submissions decreasedby approximately athird of abasispoint on average. Rabobank's submission wentfrombeingtiedas the tenth highest

submission on the Contributor Panel on the previous day to being the second highest submission

onthe Contributor Panel.

42. Submitter-3, who supervised the YenLIBOR submitters inadditionto the U.S.

DollarLIBORsubmitters, was aware of the conduct on the desk he supervised and played an

active role init . As an example, onMarch14, 2007, Trader-4messagedSubmitter-3 and asked:

"Is [Submitter-5]in mate?" Submitter-3 replied: "Not yet," and asked: "can I help ?" Trader-4

wroteback: "No worries mate, Ithink [Submitter-4]just wanted hi m to nudge up a few of the

LIBORs.. Wil lsend him amail." Submitter-3 replied: "Ok cc [additional individual]and

[Submitter-1]on it aswell mateJust incase." Trader-4 replied:" I gothold op f[Submitter-5]

mateand he said all in hand,cheers."

43. In January 2009, Rabobank's LIBORs (withthe exception o f Pound Sterling

LIBOR) ceasedbeing set in London and began to be set in Utrecht. As new submitters took

responsibilityf or settingLIBOR with limitedknowledge o f theprocessand notraining, Trader-5began to exercise even morecontrolover theLIBOR setting process. As an example, on January

28,2009, Trader-5 emailed the new YenLIBOR submitter("Submitter-6"):"Couldyou set

todays libors,,,3mthat 0.65% 6mth at 0.83%pis?" Later, Trader-5 emailed Submitter-6 again:" I f you haven't set 6mliboryet,,,couldyou set it at 0.82% instead of 0.83%pis? 3mth is okwith 0.65%o." That day, as requested, Rabobank's 3-month YenLIBOR was 0.65. Likewise, asrequested,Rabobank's 6-month YenLIBORsubmission was 0.82, adecreaseo f eightbasis

points from its previous submission, whereas the other panel banks' submissions stayed

approximatelyconstant on average. Rabobank's submission wentfrombeingtiedas thefourth

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highestsubmission on the Contributor Panel on the previous day to beingtied as the eleventh

highestsubmission on the Contributor Panel.

44. After January 2009, when Rabobank's YenLIBOR submitters moved to Utrecht,

Trader-5wouldfrequently send an entire slate ofLIBOR ratesto the submitters fo r them to

input. For instance, on February25,2009, Trader-5 wrote to Submitter-6with the subject line"libors"andwrote: "Couldyou set libors for today as belowplease?":" l m 0.39;" "2m 0.60;"

"3m0.65;" "4m0.71;""5m 0.76;" "6m 0.80." The next day, he wrote again to Submitter-6with

thesubject line "libors"andwrote:"Couldyou put the below libors for todaypis?":" l m

0.55%;""2m 0.60%;" "3m 0.65%;" "4m0.71%;""5m 0.76%;" "6m 0.80%." On both days,

Rabobank'sYenLIBOR submissions were made as requested.

45. Likewise,on May 22, 2009, Trader-5 wrote to Submitter-6:" I wi l l be away from

theofficea whole week in the next week. I fnobody ask youchangelibors or there isn 't a big

move in market,couldyou put libors around thesamelevel as the below for next weekplease?":

" l w 0.15;" "2w 0.19;" " l m 0.23;" "2m 0.42;" "3m 0.52;" "4m 0.59;" "5m 0.65;" "6m0.71."Rabobank'sYenLIBOR submissions were made consistentwith Trader-5's request each day

untilMay 29, 2009.

46. Submitterswould oftenseekout Trader-5's input in the setting process. For

instanceon January 30, 2009, Submitter-6messagedTrader-5: "any preferences infixings

today?" Trader-5 wrote back: "6m 0.82%>pis,"towhichSubmitter-6 responded: "w i l l do." Thatday, as requested, Rabobank's 6-month YenLIBORsubmission was 0.82, adecreaseof three

basispointsfrom its previous submission, whereas the other panel banks' submissionsdecreased

byapproximately abasispoint on average. Rabobank's submission went frombeingtied as the

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eighthhighest submission on the Contributor Panel on the previous day to being the eleventh


47. Trader-5 monitored Rabobank's YenLIBOR submissions andwould followup

withthe submitters on the occasions when their submissions strayed fromhisrequests. For

example,on January 30, 2009, Trader-5 emailed Submitter-6 and wrote: "Why did you moved

up3mlibor by 10.5bp? It isridiculous." Submitter-6 wrote back: "had again problems withpublishing frommysheet,""Wrong figurecameacrossby putting in manual adjustments,"

"Gonna automatize it today." Trader-5 wrote back: "3mliborcouldhave beenbelow 0.67 i fwe,

Rabo, didn' t moved up by 10.5bp!" Submitter-6 responded: "They didn' tcall fromreuters why

we were 10.5tics outwhich they shouldhavedone," continuing: "Andthey take the outliers outof their calculations, so the 76.5 price shouldn't be included." Trader-5 explained: " I f wehave

stayedat 0.66% instead of 0.765, then the 3mthliborshouldhave been0.668125%) instead of

0.67063%,. so it is below 0.67%."48. On October 18,2010, Trader-5 emailed Submitter-6's replacement as the Yen

LIBOR submitter ("Submitter-8") and wrote : "Why did you put all the YenLIBORshigher for

todaywithout tellingme? Where is the team play? You know my position is? I cant believe you

did thiswithout tellingme. I f you had to put them higher forsomereasonbut atleastyou could

havetold me in before hand. Im reallyfukked." At around thesametime, Trader-5messaged

Submitter-8:"why did you put libors all higher?" Submitter-8 wrote back: "Hi madeI just saw

youremail andreplied..Ifukkedup.,yougave[the new back-up YenLIBOR submitter("Submitter-7")]new libors lastweek.,didn'tsavethesheetand today I used my own computerfor libors..Ifukkedup, mymistake.,not onperposemate," " I am really sorry," "An d Iwouldneverchange liborswithoutconsulting you." Trader-5messagedback: " i got so surprised when

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i sawrabosnumber,you know my position then put libors higher," explaining:"somepplreactinthis way so i worried as well i fyouwere thiskindof a guy."

49. At times, Trader-5 madeclear to thesettersthat thepurposeo faffecting

Rabobank'sLIBOR submission was to affect the final LIBOR fix. For example, onJanuary29,

2009, Submitter-6messagedTrader-5 and wrote: "saw the 6m vs 3mbasis collapsing last

night.." Trader-5 wrote back: "becausewe lowered 6mlibor !" Submitter-6 responded: "hehehabsolutely., itcomesur way ipresume,"and later:"preferencesin the fixingtoday?" OnOctober20, 2010, Submitter-8 chattedwithTrader-5, writing:"so whats thereasonthat you dont

put down Rabo JPY libor numbers?just one tick to see whathappens?Or is that sort of

manipulation and notdone?or am I saying something stupid now?" Trader-5 responded: "Rabo

JPYLIBORnumbers are already one of the lowest fourbanksamong 16panelbanksso even i fweput them lower furthe r, it wouldnt give anychangeon yen libors," towhich Submitter-8

replied: " I see.." Trader-5 then wrote: "and ithinkjustkeeplibors one of the lowest fourbanks

is thegood,ideabecause it isnt obvious so that ppl wouldntnotice, i f it is too obvious, ppl could

startlookingat us manipulating libors."

50. Trader-5 had almost complete control over the Yen LIBOR settingprocessat

RabobankafterRabobank'sLIBOR submitters moved to Utrecht inJanuary 2009. For instance,

onAugust 4, 2009, Trader-5 askedSubmitter-7:"haveyou put todays libors?" Submitter-7

wrote back:"nopeyou can set them i fyou like." Trader-5 wrote back: "justsentit out now.

thank you." OnJune12, 2009, Trader-5messagedSubmitter-7: " i senta email about LIBORs...

didyou get it?" Submitter-7 wrote back: " i w i l l input them," towhichTrader-5 responded:

"thankyou for your help!" In fact, Trader-5's control of theprocesswas so significant that after

Rabobankprohibitedswapstradersfromcommunicating about LIBORratesetting with

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submitterson November 30, 2010, Trader-5 explained to a broker:"T i l ltwo weeks ago I was

seting libors for rabo but due to BB A investigationsomeoneout side of europe shudnt have any

influenceo fliborsthen I cudnt be involved in libors after then." 4

51. In fact , althoughTrader-5'srequeststo Rabobank's YenLIBOR submitters werefrequentlymotivated by his own trading positions,Trader-5'scommunications after January2009were sometimes the result, at least in part, of his belief that he was Rabobank's Yen

LIBOR submitter and thatRabobanlc'sactual YenLIBOR submitters, due to their lack ofrelevant knowledge, needed his input. Thus on numerous occasions Trader-5 communicated

ratesto Rabobank's YenLIBORsubmitters even though neither he nor others on his desk had a

tradingposition related to that rate. As such, on numerous occasions, Trader-5'scommunications were, at least in part, not motivated by a desire to benefitswapstraders' trading

positions.

52. Certainmid-levelsupervisors were likewise aware o f Trader-5's behavior. For

instance,on November 4, 2008, when the YenLIBOR submissionprocesswas stillbeing

handled inLondon,Trader-5 wrote to Submitter-3 [Rabobank's GlobalHead ofLiquidity and

Financeand the head of Rabobank's money markets desk inLondon],Submitter-1 and

Submitter-5,asking:"Couldyou set 6mliborat 0.98% today i f possibleplease?" Submitter-5

responded:"SURE." That day, as requested, Rabobank's 6-month YenLIBOR submission was

0.98, adecreaseo ff i vebasispointsfromits previous submission, whereas the other panel banks'submissionsdecreasedby approximately athird of abasispoint on average. Rabobank's

submission wentfrombeingtiedas the fifth highest submission on the Contributor Panel on the

previous day to beingtiedas the tenth highest submission on the ContributorPanel. Trader-5

4 Even after Trader-5 was instructed not to influence Rabobank's YenLIBOR submissions, on

occasion he accepted solicitations by brokers to attempt to influence YenLIBOR submissions at

other Contributor Panel banks.

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likewiseemailed Submitter 3,Submitter-1,and Submitter-5 on October 31,2008, asking: " I f

possiblecouldyo u put 0.99% for 3mliborand 1.07%fo r 6mLIBORpis?" That day, asrequested,Rabobank's 3-month YenLIBORsubmission was 0.99 and its 6-month YenLIBO R

submission was 1.07,both unchanged fromthe previous submissions, whereasthe other panelbanks'3-month YenLIBOR submissions decreasedby approximately fivebasispoints on

average,and their 6-month YenLIBOR submissions decreasedby approximately four and ahalf

basispoints onaverage. For 3-month Yen, Rabobank's submission went frombeingtied as the

fifth highest submission on the Contributor Panel on the previous day to being thethird highest

submission on the Contributor Panel. Likewise,for 6-month Yen, Rabobank's submission went

frombeingtiedas the fifth highest submission on the Contributor Panel on the previous day to

beingthe fourthhighest submission on the Contributor Panel.

53. Trader-5's own supervisor, and the head of Rabobank's Yen derivativesdeskin

Tokyo,Trader-6, was also aware of and intimatelyinvolved in Trader-5's conduct, directing

requeststo submitters through Trader-5 to benefit Trader-6's trading positions. For example, on

October8, 2008, Trader-5 emailed Submitter-4with the subject line "Todays libors..." writing:

" I fis it ok, [Trader-6]would like todays 6mliborat1.10%. Thank you very much fo r help."Submitter-4 wrote back: "Ok skip ." That day, as requested, Rabobank's 6-month YenLIBOR

submissionwas 1.10,adecreaseo f tenbasispoints from its previous submission,whereastheotherpanel banks' submissions increased by approximately one and three-quarters basispoints

onaverage. Rabobank's submission wentfrombeingtiedas the fifth highest submission on the

ContributorPanel on the previous day to beingtiedas the twelfthhighest submission on the

ContributorPanel.

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54. Likewise , on July 24, 2008, Trader-5 wrote to Submitter-4: "As for the today's

libors. Could you set 6m at 0.97%please?[Trader-6] has bi gfixingsover the next couple of

weeksso that itwouldbe nice i f

you couldkeep it as low as possible forsometim e." Submitter-

4responded: "W i l l do mate." That day, as requested, Rabobank's6-month Yen LIBOR

submissionwas 0.97, adecreaseofthreebasispoints,whereasthe other panel banks'

submissions stayed approximately constant onaverage. Rabobank's submission went from

being tied as the sixth lowest submission on the Contributor Panel on the previous day to being

tied as the second lowest submission on the Contributor Panel.

55. In acallon July 25, 2008, Trader-6 told athirdparty at another financialinstitution: "Sometimes i fyouwant theLIBOR to be set, i f you want today's LIBORat a certain

price, your desired number [wouldbe achieved]." Afterthethird party replied: "Really?"

Trader-6 explained: "Well,we are theoneswho set [theLIBOR]." Trader-6 continued: "The

recent97 hadbeenset at 97 due to my wishes," explaining: "That is obviously . . . that'sa little

bad . . . Well,anyway, the person with thestrongestwishes gets to decide it. Well, this is the

way it is."

56. On occasion, othertraderson Trader-6's deskmade requestswhen Trader-5 was

absent. On May 25, 2009, Submitter-6 forwarded Trader-5's out-of-officemessageto thejunior

traderon Trader-5's desk("Trader-8"). Trader-8 wrote back: "What can I help you ??"

Submitter-6 responded: "Normally [Trader-5]sendsus hispreferencesfor the JPY libors. I f you

haveany let me know." Trader-8 wrote back: "We don 'thave any special requestsf or libors

today." The next day, Trader-8 replied again: "Aboutlibors..Sameas last Fridaypis. i f noparticular intfrom others."

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57. On occasion, Trader-6 also made requestsdirectly to Rabobank's YenLIBOR

submitters. For example, on August 4, 2008, Trader-6messaged Submitter-4:"Pleaseset

today's 6mthLIBORat 0.96," continuing: " I have chunky fixing.... Thanks for your help," to

which Submitter-4 replied: "No worr ies mate." That day, as requested, Rabobank's 6-month

Yen LIBORsubmission was 0.96, adecreaseo f threebasispoints, whereas the other panel

banks' submissions stayed approximately constant on average. Rabobank's submission went

frombeingtiedas the fourthlowest submission on the Contributor Panel on the previous day to

beingthe second lowest submission on the Contributor Panel. Two days later, on August 6,

2008, Trader-6messagedSubmitter-4 again: " I have another side of fixing today andtomorrow,"

continuing:"can we make 6mthLIBORat 0.98?" Submitter-4 wrote back: "Okhigher?...surething." Trader-6 responded: "Yes,onlytoday and tomorrow...thanks." That day, Rabobank's 6-monthYenLIBORsubmission was even higher than requested, 1.00, an increase offourbasispoints,whereas the other panel banks' submissions stayed approximately constant on average.

Rabobank'ssubmission wentfrombeing the second lowest submission on the Contributor Panel

onthe previous day to beingtiedas the fourthhighest submission on the Contributor Panel.

Rabobank'ssubmission the next day remained thesame,as did its submission's place on the

ContributorPanel. On Friday, August 8, 2008, Trader-6messagedSubmitter-4 again: "Could

youmake it 6mthLIBORat 0.97 today,"explaining: " I have big fixing coming two weeks.... "

Thatday, as requested, Rabobank's 6-month YenLIBORsubmission was 0.97, adecreaseof

threebasispoints, whereas the other panel banks' submissions stayed approximately constant on

average. Rabobank's submission wentfrombeingtiedas thefourthhighest submission on the

ContributorPanel on the previous day to beingtiedas the second lowest submission on the

ContributorPanel. Rabobank's submission remained thesameon Monday, August 11, 2008,

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Tuesday,August 12, 2008, and Wednesday, August 13, 2008. On August 14, 2008, Trader-6

messagedSubmitter-4 yet again and wrote: "Today and 19thAug are the biggest fixing for us.Couldyou set 6mLIBOR at 0.93 today." That day, Rabobank's 6-month YenLIBOR

submission was 0.94, adecreaseo f threebasispoints,whereasthe other panel banks'

submissionsstayed approximately constant onaverage. Rabobank's submission wentfrom

beingtiedas the seventh lowest submission on the Contributor Panel on the previous day to

beingtiedas the second lowest submission on the Contributor Panel. On August 19,2008,Rabobank's6-month YenLIBORsubmission was 0.93, making ittiedas the lowest submission

onthe Contributor Panel.

58. Other Rabobank traders continued to make requestsaswell. For instance, on

June25, 2009, another Yen trader ("Trader-7") emailed Submitter-7 and wrote: "could you set

inputfor the JPY 6Mliborvery low today (65 or so). Wehavea very large fixing today in the 6

month's." That day, as requested, Rabobank's 6-month YenLIBOR submission was 0.65, a

decreaseo f sixbasispoints fromits previous submission,whereas the other panel banks'

submissionsdecreasedby approximately abasispoint onaverage. Rabobank's submission went

frombeingtiedas the eighth lowest submission on the Contributor Panel on the previous day to

beingtiedas the second lowest submission on the Contributor Panel.

59. Traders and submitters did not hide the fact that traders had influence over the

YenLIBOR submissionprocessfromtheir supervisors. The Head ofLiquidityand Finance for

Europe,and later Submitter-3's replacement as Global Head ofLiquidity and Finance ("Trader-

9"),was informedthat Trader-5 would sometimes email the YenLIBOR submitterwithrequests.

OnDecember 9, 2008, Trader-9 emailed Submitter-3 and Submitter-5with the subject line:

"LIBORS." In the email , Trader-9 wrote: "Good tohearthat [Submitter-8] is up and runn ing.

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Shortquestion: only question mark for me is him sending out the daily Rabo Libor fixings. He

toldme that he wi l l just 'copy,paste' the previousdaysLibors. Don't blame [Submitter-8] of

course,but he has got no clue on this yet. What you think, is this going ok? Want to prevent that

weget questions fromBB A on this?" Submitter-5 replied: "Yes [Submitter-8] is doingfine,regardingthe libors," explaining thatwith: "the yen libors sometimes [Trader-5] wi l l emailfrom

Tokyoto ask for any specialrequests."

60. In March 2009, when Rabobank conducted an operational audit of the Money

Marketsdesksin Utrecht and London, the auditor, after meetingwith Submitter-6, wrote in her

workpapersthat: "Submitter-6also inputs the JPYLiborrateson behalf o f the Tokyo team to

theBBA as theyhavenoaccessto do this. They provide this via email." Within her work

papers,the auditor included an emailfromTrader-5 to Submitter-6 inwhichTrader-5 sent

LIBOR ratesto Submitter-6 for submission. Despite noting thisinformationi n herworkpapers,

the auditor did not appreciate its significance.

C, Euribor

61 . From in or around July 2007 throughSeptember2008, multiple RabobankEuriborswapstradersin London and Utrechtmadefrequent and regular requestsfor favorable

Euribor contributions to the Rabobank Euribor submitters on the Utrecht money markets desk.

Rabobank'sEuribor submitters accommodated the requestson numerous occasions.

62. For example, onApril22, 2008,Rabobank'sEuribor submitter, Submitter-9,

messageda Euriborswapstrader("Trader-10"):"Hello let's cheaton the fixes ??" Trader-10wrote back: "only biggie is really low 3s. much appreciated, as usual:)." That day,Rabobank's

3-month Euribor submission was 4.81, anincreaseof onebasispoint . Due to upward movement

byotherbankson the Contributor Panel, however,Rabobank's submission went frombeing tied

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asthetwenty-firsthighest submission on the Contributor Panel on the previous day to beingtied

asthe twenty-eighth highest submission on the Contributor Panel. On September 5, 2008,

Submitter-9messagedTrader-10: "H i still high3s and 6s ??" Trader-10wrote back: "yes,everythinghighpis." That day, Rabobank's 3-month Euribor submission was 4.97, anincreaseofonebasispoint. Rabobank's submission wentfrombeingtiedas the thirteenth highest

submissionon the Contributor Panel on the previous day to beingtied as the seventh highest

submission on the Contributor Panel. Likewise, Rabobank's 6-month Euribor submission was

5.19,anincreaseo f onebasis point. Rabobank's submission wentfrombeingtied as the

eleventhhighest submission on the Contributor Panel on the previous day to being tied as the

fourthhighest submission on the Contributor Panel.

63. The trader requestson the Euribordeskweremadeboth toadvance the traders'

tradingpositions and to maintain theappearanceof consistency i n Rabobank's submissions. On

June3, 2008, Submitter-9messagedTrader-10:"salutfixesplease??" Trader-10 replied: "ok,hold ontight; high 3s and 6spis " Submitter-9 replied:"high>?? Usure??" Trader-10 wroteback: "yes indeed only3 s not soo big and prob tomorrow low again so maybe dont spoil the

pattern too much? thanks eitherway:)." On September 24, 2008, Submitter-9 wrote: "h ihigh3

and 6s," towhichTrader-10 replied: "today lowI sand 3s,high 6spis:-) merci " Submitter-9wroteback: "u got me confusedhere [Trader-10]." Trader-10replied: "alwayshigh6s, and ourfixings Is and3sare large enoug today to want lowerfixingsthere, Is and 3s dochangedaily,ife.g.3m is small then we go forhigh3s to support yourhigh6s.bon?" Submitter-9 replied: "alesson infixings!!!!"

64. In addition to accommodatingswapstrader requests,a Rabobank Euribor

submitter also took her own trading positions into account. On September 29, 2008, Submitter-9

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messagedTrader-10: "Hi low 3s andhigh 6s ??" Trader-10 wrote back: "yes pis [Submitter-9],low Isand 3s actually, both are quitebig. ,many thanks!" Submitter-9 replied: " I have7 bio Is."Trader-10replied: "meaning you need it high?" Submitter-9 wrote: " I hearbetween 4.95 and5.05is Iswhat shall put ???"

65. Certain other traders and submitters also sentand received requests. For instance,

onJuly 12, 2007, another Euribor trader ("Trader-11")wrote to the backup Euribor submitter("Submitter-10")withthe subject line: "fixings." In themessage,Trader-11wrote:"Onlywhenitdoesn'taffectyou in a negative way: today we 'd liketo see the 6Mfixingashigh as possible

and the 3Mfixingas low aspossible...many thanks!" On November 19, 2007, another U.S.Dollarand Euribor trader ("Trader-12")messagedSubmitter-9: " I need high3m euribor today!"That day, Rabobank's 3-month Euribor submission was 4.62, anincreaseo f sixbasispoints.

Rabobank'ssubmission wentfrombeingtiedas thethirty-eighthhighest submission on the

ContributorPanel on the previous day to beingtiedas the eighteenth highest submission on the

Contributor Panel.

66. Accordingtomultiple Rabobank employees, Trader-11and at leastone otherEuribor swapstradermaderegular and frequent verbalrequeststo the submitters for submissions

thatwould benefit their positions.

D. Pound Sterling

67. From in or around November 2007 through February 2009, atleast one Rabobank

Pound Sterlingswapstrader in Londonmadeoccasionalwrittenrequestsf or favorableLIBOR

Pound Sterling contributions to the Rabobank LIBORPound Sterling submitters on the London

moneymarketsdesk. Rabobank's LIBORPound Sterling submitters accommodated the requests

on occasion.

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68. For example, on November 30, 2007, the Pound Sterlingswapstrader ("Trader-

13") emailed the Pound SterlingLIBOR setter ("Submitter-11")with the subject line:"Libors."Themessageread: "Need high 3s wnd low Is." Submitter-11wrote back: "Okok." OnDecember2, 2008,Trader-13emailedSubmitter-11againwith the subject line:"Libors." Themessageread: "Need high Isand 6splease "

Interbank Coordination of Rate Submissions

69. From as early asJanuary 2006 through October 2008, a Rabobank YenLIBOR

submitter and a Rabobank Euribor submitter had twoseparateagreementswithtraders at other

banksto make YenLIBOR and Euribor submissions that benefitted trading positions, rather than

submissionsthat compliedwiththe definitions ofLIBOR and Euribor. Therequestsweremade

viaelectronicmessagesand telephone conversations. Thetraders and submitters who received

suchrequestsagreed to accommodate, and did in fact accommodate therequests on numerous

occasions.

A. Yen LIBOR

70. From as early as May 2006 and continu ing atleast through October 2008,

Submitter-4and a trader ("Trader-B") at another Contributor Panel bank ("Bank-B") had an

agreementthat theywould,uponrequest,contribute YenLIBOR submissions to benefiteach

other'strading positions, or the trading positions of other traders, whenever doing so did not

adverselya ffect their own trading positions. As Trader-B explained in an emailforwardinga

YenLIBOR submission requestfromSubmitter-4 to the YenLIBOR submitters atBank-B:"We

usually try and helpeachother out...butonly i f it suits."71. OnJune27, 2006, fo r example, Submitter-4 communicated withTrader-B: " i

needa high lmth today - so iw i l l be setting an obseenly high lmth." Trader-B responded: "sure

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matenoworries...giveus an idea where and i l ltry noblige...;),"towhichSubmitter-4 replied:"ok great -well atmo thinking of setting mine around 17." Trader-B accommodated Submitter-4'smanipulationrequest, as Bank-B 's one-month submission fo r that day was 0.17.

72. On July 6, 2006, Submitter-4 communicated with Trader-B: "forinfo ineeda

high l m t h set today - iwi l lbe setting something ridiclouslike28 or 29 forinfo." That day,Rabobank's 1-monthYenLIBOR submission was 0.29, an increaseo ftwo basispoints, makingRabobank's submission the highest submission on the Contributor Panel. Likewise,Bank-B's 1-

monthYenLIBOR submission also increased by twobasispoints.

73. Onoccasionswhen Submitter-4 or Trader-B was unable to, or failedto,accommodatetheother'strading position, aneffortwas sometimes madeto explain the attendant

circumstancesand topreservetheiragreement. For example, on March 28, 2008, Submitter-4

preemptively contacted Trader-B to explain that their submissions would be atoddsthat day:

"morning skip - [Trader-5] has askedme to set high libors today - gaveme levels of l m 82, 3m

94....6m 1.02." Trader-B replied: "srymate cant obligetoday...ineedem lower !!!" Submitter-

4 then explained: "yes was told by [athird party]...justthought i'd let you know why mine willbehigher ...andyou don't getcrosswith me."

74. Similarly, onJanuary5, 2007, Trader-B explained how he had mistakenly failed

to accommodate a manipulat ionrequestfromSubmitter-4: "just b4 youbeatme up.. . . Iwas in

meetingso didn't do me liborstoday...thkthey put .52 forIs . . ." Submitter-4 answered: "hahahnothatsfine - thatswhat i set too cheersskip."

75. Theagreement between Submitter-4 and Trader-B wasalso usedto manipulate

Yen LIBOR to benefit other tradersatboth'RabobankandBank-B. For example, on May10,2006,Submitter-4madea manipulationrequesto f Trader-B on behalf o f Trader-4 for a low six-

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monthsubmission: "re our conversation yesterday about libors...forinfoi'vebeenasked by mySingaporeman to help him outwith asillylow 6mfixingtoday. . ...just fo r your info." Trader-B

responded:"Tell himI ' l l dosame i f hegetsme ajob!!!!"

76. On July 27, 2006, Submitter-4 contacted Trader-B on behalf of Trader-5 to

requestahighone-month submission consistent withRabobank's submission: "[Trader-5] wants

ahigh l mf i x fromme today....amgoing to set .37." Trader-B agreed: "that suits mate," "sohappyto ablige." Bank-B's submission jumpedfrom0.35 to 0.37 between July 26, 2006, and

July27, 2006, a move that took Bank-B's submission frombeingtiedas the lowest submission

onthe Contributor Panel to beingtiedas the second highest submission on the Contributor Panel.

77. Thefollowingday, July 28, 2006, Submitter-4 and Trader-5 conferred internally

regarding their mutualdesiresfor another high fixing. Submitter-4 stated to Trader-5: "setting a

high l m again today - 1need it!"towhich Trader-5 responded: "yes pismate...1need a higherl m libortoo." Withinapproximately 20 minutes, Submitter-4 contacted Trader-B and stated:

"morningskipper w i l l be setting an obscenely high l m againtoday...poss38 just f y i . " Trader-B responded, "(K)...ohdear..my poor customers....hehehe manual input libors again todaythen!!!!" Bothbanks' submissions on July 28, 2006, moved up onebasispoint,from0.37 to

0.38,a movewhich again placed their submissions as the second highest submissions on theContributorPanel that day.

78. As discussed in paragraph 41 above, on March19,2008, Submitter-4 agreed to arequest fromTrader-5 and Trader-6 to submit a six-month YenLIBOR rate(1.10%) thatSubmitter-4knew to be incorrect. Submitter-4 then contacted Trader-B pursuant to their

understanding torequesta similar manipulation of Bank-B's YenLIBOR submission for that

day: "[Trader-5]needsahigh 6mlibor i f ucan help skip - asked me to set 1.10!" Trader-B

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answered:"oopsmy 6s is 1.15!!!,""he'll love me," and"sendh im myregardsthe lovely

fella....notheard fromhim in awhile "79. Likewise, Trader-B had a July 19,2007, telephone conversation with another

traderat Bank-B ("Trader-C"), inwhichTrader-Cmadea manipulationrequesto f Trader-B for

three-monthYenLIBOR, and Trader-B offeredto extend Trader-C's manipula tionrequestto

Submitter-4:

Trader-C: Ineeda littlefavor today for what it'sworth. I don' t know what

you'vebeendoing in 3 months, but we've got likeafixingof 83

billion onMonday, [unintelligible]Lowthrees, [unintelligible]Trader-B: What you want to do, what you want me to put lowlibor in , is that

whatyou are saying?

Trader-C: Yeah, lowliborin the threes.

Trader-B: Yeah,'course I can, mate. No worries at al l.

Trader-C: Thatwouldbe nice.

Trader-B: I ' l l haveawordwith [Submitter-4] as well,he'll drop it down fo r

you aswell I 'msure, [unintelligible] I tneedsmore than one,mate,trust me. [unintelligible] Where do you want it? A n d I ' l l

just pitch it wherever youwant, [unintelligible]Trader-C: U m . ..roughlywhere it was yesterday, that'sfine. Thatmakesus

tenunder.. .wel l , just under ten under [unintelligible]we'vebeenfundinglately.

Trader-B: [unintelligible]Yeah,sure.

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A short time later, Trader-B followedthrough and contacted Submitter-4with Trader-C's

manipulationrequest:"mrngbeautiful i fu canwould love a lowfixingin 3s libor today...."Submitter-4thenasked:"ok skip - what uneed?"towhich Trader-B answered: ".77 i fpossbut

just no higher than yest!!" Submitter-4agreed,stating: "no prob." On that day, both Rabobank

andBank-B submitted 0.77 for the three-month YenLIBOR, placing both banks' submissions in

atie for the second lowest submission on the Contr ibutor Panel.

80. On July 7, 2009, Trader-5, who at the time was stillworking at Rabobank,

communicated withSubmitter-4, who was no longerworking at Rabobank: "lookslikesome

ppl are talkingwith eachother when they put libors down. . . quite surprised that 3m liborscame

down a lot." Submitter-4 replied: "yes deffmitemanipulation - always is tho to behonest mate... i alwaysusedto ask i f anyone neededa favour and viseversa. . . . a little unethical but always

helpstohavefriends inmrkt."B. Euribor

81 . From atleastas early asJanuary2006, and at various times until atleastDecember2007, Submitter-9 received requestsfromtwoswapstraderslocated in London at a

non-Contributor Panel bank ("Bank-C") to moveRabobank'sEuribor submission in a direction

thatwouldbenefit their trading positions. Thesetraders requestedthatRabobank'sEuribor

submittercontribute a particular Euribor submission, or move the submission in a particular

direction (i.e.,up or down). These requestswere accommodated on numerous occasions.

82. In order to accommodate therequests,Submitter-9 adjusted her Euribor

submissionsfromwhat she ordinarilywouldhavesubmitted to aratethat benefitted the Bank-Cswapstraders. For example, onSeptember21 , 2006, she informed one of thetraders ("Trader-

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D") that she saw the 1-month f i xat 3.205. When informed by Trader-D that he wanted a lowersubmission, she lowered the Rabobank rateto3.19.

83. On atleastone occasion, Submitter-9 was asked to submit 3-month Euribor "at

theceiling"because,as another Bank-Cswaps trader ("Trader-E") explained: " I am long in

fixings against Dec futures it cost me a fortune yesterday " Submitter-9informedhim that

shecould notbecause the Rabobank "longswapsneed it low."

84. Submitter-9 was aware that her Euribor submissions wouldimpact the

trading positions of the Bank-C traders. Onmultiple occasions, she contacted them to

specificallyask i fthey had trading positionsdependenton Euribor before submitting Rabobank's

rate. For example, onJune 14,2006, Submitter-9 asked Trader-D: "do youhave fixings??" towhich Trader-D responded: "yes." Submitter-9 then asked: "what do you want?" Trader-D

stated:"lo w the l m andhighthe 3 and the 6please." Submitter-9 agreed, responding: "2.86 2.97

and 3.12 i ' mgoing to getmyself [kicked out of the fix] but okay." Rabobank's Euriborcontributionthat day was exactly as Submitter-9 promised.

Awareness of Rabobank Managers

85. Certainmid-levelRabobank managers5were aware of, and participated in, theinternalmanipulation ofLIBOR submissions by derivatives traders as described above.

86. For example, Submitter-3 was Rabobank's Global Head ofLiquidity and Finance.

Submitter-3was the head of Rabobank's money marketdeskin London, directly supervising

Submitter-1, Submitter-2, Submitter-4, and Submitter-5. Submitter-3 knew thatrequestswere

madeto Rabobank's U.S.DollarLIBORand YenLIBORsubmitters to contribute submissions

5 The term"manager"doesnot include members of the board of directors, executive board, or

executivemanagement of Rabobank.

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tobenefitswapstraders' trading books, and he notonly tolerated suchactivity,butdirectly

participated in it.

87. Trader-9 replaced Submitter-3 as theGlobalHead ofLiquidity and Finance,

previouslyhaving served as the Head ofLiquidity and Finance for Europe. Trader-9 was the

headof Rabobank's money market desk i n Utrecht,directly supervising Submitter-5, Submitter-

6,Submitter-7, Submitter-8, Submitter-9, and Submitter-10. Trader-9 was informedthat Trader-

5would forwardrequeststo the submitters underTrader-9'ssupervision, but Trader-9 did not actto stop such conduct. Further, many of the submitters underTrader-9'ssupervision had no

trainingon how to calculateLIBORsubmissions, creating conditions for traders to exert

substantial influence on the submitters and for Trader-5 to take over the YenLIBORsetting

process.

88. Trader-6 was the head ofGlobalFinancial Markets Trading forTokyo and,

startingin October 2008, the head ofGlobalFinancial Markets forTokyo. Trader-6 was the

headof Rabobank's Yen trading desk inTokyo, directly supervising Trader-5, Trader-7, and

Trader-8. Trader-6 made numerous requeststo Rabobank's YenLIBOR submitters to benefit his

tradingbook, was aware of the fact that Trader-5 made similarrequests,and directed Trader-5 to

makerequestsonTrader-6'sbehalf.89. Trader-3 was the head of Interest Rate Derivat ivesforNorthAmerica, directly

supervising Trader-2. Trader-3 made at least one request to Rabobank's U.S.Dollar LIBOR

submittersto benefit his own trading book, was aware o f the fact that Trader-2 made similar

requests,and directed Trader-2 to make at least one request onTrader-3's behalf.90. Trader-4 was the Head ofMoneyMarkets and Derivatives TradingforNortheast

Asiaand the Head ofLocal Currency Trading fo rAsiaPacific,eventually being promoted to

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HeadofLiquidityand Finance forAsiaPacificinNovember 2010. Trader-4 notonlywas aware

ofthe fact that Trader-5 maderequeststo Rabobank's YenLIBOR submitters tobenefithis

tradingbook, but Trader-4 hadpreviouslymade numerous suchrequestson his own behalf.

Implications of the Derivatives Traders Requests

91 . When Rabobank derivatives traders maderequestsof Rabobank rate submittersinorder toinfluenceRabobank's benchmark interest rate submissions, and when the submitters

accommodated those requests, themanipulationof the submissions affectedthe fixed rateson

various occasions.

92. Likewise,when Rabobank derivatives traders influencedthe submissions of other

ContributorPanel banks by seeking and receiving accommodations fromtheir counterparts at

suchbanks, and when Rabobank derivatives traders accommodated the requestso f traders at

otherContributorPanel banks and non-panel banks, themanipulationof those submissions

affectedthe fixed benchmarkrateson various occasions.

93. Indeed, the purpose ofthis activitywas to manipulate benchmark submissions

fromRabobank and other banks toinfluencethe resulting fixes and thus to have a favorable

effecton the derivatives traders' tradingpositions. Because traders' compensation was based in

parton the profitand loss calculation oftheirt rading books, derivatives traders' requestswere

intended to benefit their compensation as well.

94. Becauseo f thehighvalue of thenotional amountsunderlyingderivatives

transactionstiedtoLIBOR andEuribor,even very small movements in thoseratescould have

hadasignificantpositive impact on theprofitabilityof a trader's tradingportfolio,and a

correspondinglynegative impact on their counterparties' trading positions.

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95. Rabobank entered into interest rate derivatives transactions tiedtoLIBOR and

Euribor- such as derivatives,forwardrate agreements, and futures - withcounterparties to those

transactions. Many of those counterparties were located in theUnited States. Those United

States counterparties included,among others,assetmanagement corporations, mortgage and loan

corporations, and insurance companies. Those counterparties also included banks and other

financial institutions in theUnitedStatesor located abroadwith branches in theUnitedStates.

96. In the instances when the published benchmark interestrateswere manipulated in

Rabobank'sfavo r due to Rabobank's manipulationofitsown or any otherContributorPanel

bank's submissions, thatmanipulationbenefitted Rabobank derivatives traders to the detriment

ofcounterparties, at leastwith respect to the particular transactions comprisingthe trading

positions that the traders tookintoaccount in making theirrequeststo the rate submitters.

CertainRabobank derivatives traders and rate submitters whotriedto manipulateLIBORand

Euriborsubmissions understood the features of the derivatives products tiedtothesebenchmarkinterest rates; accordingly,they understood that to the extent they increased theirprofitsor

decreasedtheirlossesin certain transactions fromtheireffortsto manipulate rates, their

counterpartieswould suffercorresponding adverse financialconsequenceswith respect to those

particular transactions.

97. When therequestso f derivatives traders fo r favorableLIBORand Euribor

submissionswere takenintoaccount by the Rabobank rate submitters, Rabobank's rate

submissionswere false andmisleading. Those false and misleadingLIBOR and Euribor

contributionsaffected or tended toaffectthe price o fcommodities, includingfutures contracts.

Moreover, in making and in accommodatingtheserequests, the derivatives traders and

submitters were engaged in a deceptive course of conduct in aneffortto gain an advantage over

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theircounterparties. As part of thateffort:(1) derivativestradersand submitters submitted and

causedthe submission ofmateriallyfalse and misleadingLIBORand Euriborcontributions;and

(2)derivatives traders, both before and afterinitiating andcontinuingtheireffortto manipulate

LIBORand Euriborcontributions,negotiated and entered intoderivative transactions with

counterpartiesthat did notlmowthat Rabobanlc employees were often attempting to manipulatethe relevant rate.

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RABOBANK'S ACCOUNTABILITY

98. Rabobank acknowledges that thewrongfulactstaken by theparticipating

employees in furtherance of the misconduct set forthabove werewithin thescopeoftheir

employment at Rabobank. Rabobank acknowledges that theparticipatingemployees intended, at

leastin part, tobenefitRabobank through the actions described above. Rabobank acloiowledges

that due to this misconduct, Rabobank, includingthe Rabobankbranchesoragenciesin the

United States,have been exposed to substantialfinancial risk,andpartlyas a result of the

penalties imposed by this deferred-prosecution agreement and under agreementsreached with

othergovernment authorities, has sufferedactualfinancial loss.

Informe del Departamento de Estado USA sobre la Manipulación del Euribor por Rabobank

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