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Societe Generale
United States authorities charged two managers at the French bank Societe Generale with taking part in a scheme to manipulate the Libor rate, according to the New York Times.

The article said Danielle Sindzingre, the bank’s former global head of treasury, and Muriel Bescond, the bank’s former head of treasury in Paris were accused in an indictment of submitting false information about the rates at which the bank was able to borrow money. The indictment was filed in the United States District Court for the Eastern District of New York.

Prosecutors said that from around May 2010 to October 2011, Sindzingre, Bescond and several others who have not been charged or named in the indictment caused Societe Generale to report false lower rates that were used to set the United States dollar Libor rate.

The scheme reportedly aimed to repair the bank’s reputation after external analysts drew attention to the high interest rates that the bank had been reporting.

The false reports affected millions of transactions tied to the benchmark rate and caused more than $170 million in harm to global financial markets, prosecutors said.

Sindzingre and Bescond are charged with conspiracy and transmitting false reports.

Societe Generale told this publication: “As previously disclosed, Société Générale has received formal requests for information from several authorities, including the US Department of Justice ("DOJ"), in connection with investigations regarding submissions to the British Bankers Association for setting certain benchmark rates, including the London Interbank Offered Rates. Société Générale is cooperating with the investigating authorities.”

Libor, or London Interbank Offered Rate, is a benchmark rate that some of the world’s leading banks charge each other for short-term loans.