Barclays Agrees to Pay $100 Million to Settle State Libor Probes

By Erik Larson, Bloomberg News

Barclays Plc agreed to pay $100 million to 44 states to resolve an investigation into interest-rate manipulation. Its the first bank to settle state probes into false rate submissions that inflated borrowing costs linked to the London and U.S. Dollar interbank offered rates.

The scheme to manipulate rates from 2005 to 2009 masked Barclays’s poor health during the global financial crisis at the expense of government entities and not-for-profits whose contracts were linked to the rates, New York Attorney General Eric Schneiderman’s office said Monday in a statement. The manipulations also benefited Barclays’s own traders at ...