Lloyds Banking Group receives subpoenas in Libor probe
Lloyds said it had not yet allocated any funds to potential penalites resulting from Libor probe
By CFOWorld staff | CFO UK | Published 10:35, 26 July 12
Lloyds Banking Group said on Thursday that it had received subpoenas as part of an investigation into key benchmark rate rigging scandal engulfing Barclays bank.
"Certain members of the group have received subpoenas and requests for information from certain government agencies and are co-operating with their investigations," the bank said.
The bank also said it had not allocated any funds to cover any potential penalties resulting from the Libor fixing scandal
The group reported first-half results on Thursday that came in just ahead of expectations. Lloyds said its underlying profit increased by £715 million to £1.064 billion in the first half, ahead of the consensus forecast of £1.03 billion, according to a poll of 20 analysts supplied by the company.
Barclays has been rocked after being fined a record £290 million by US and UK authorities for manipulating Libor interest rates. More than a dozen other banks are also being investigated and more fines are expected.
Lloyds said it was not possible to predict the scope, timing and ultimate outcome of the various regulatory investigations or private lawsuits.
It also said it had increased the amount of compensation set aside to cover claims against the mis-selling of insurance products. It said it had set aside another £700 million to compensate customers for the mis-selling of insurance products.
Compensation for the mis-selling of payment protection insurance has now cost £1.075 billion this year, and £4.3 billion pounds in total.
The PPI hit dragged it to a statutory loss of £439 million.
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