Lloyds Banking Group could face further punishment after agreeing to pay fines totalling $370 million (217.80 million pounds) for its part in a global interest rate rigging scandal and for attempting to manipulate fees for a government lending scheme to help banks.
The settlement is the seventh joint penalty handed out by American and British regulators in connection with the attempted manipulation of the London interbank offered rate, or Libor, and other similar benchmarks used to price around $450 trillion of financial products worldwide.
But it is the first penalty for attempting to fix so-called "repo" rates to reduce fees for a taxpayer-backed scheme set up by the Bank of England to support British banks during the 2008 financial crisis.
This special liquidity scheme (SLS), launched in 2008, was an attempt to free up banks' balance sheets and boost confidence in the financial system. It enabled banks to exchange hard-to-trade mortgage assets for government bills.
Bank of England Governor Mark Carney said in a July 15 letter to Lloyds' chairman Norman Blackwell the attempted manipulation could lead to criminal action against those involved.