C Citigroup Inc

Citibank N.A. agreed to pay $425 million to end long-running civil probes into the bank's alleged manipulation of key benchmarks, becoming the first U.S. bank to resolve claims related to the Libor benchmark.

The bank agreed to pay $250 million to resolve claims from the Commodity Futures Trading Commission that it attempted to manipulate the ISDAFIX benchmark swaps rate, and an additional $175 million to resolve claims from the regulator that it tried to rig the Yen Libor and Euroyen Tibor interest rate benchmarks.

The settlements are the latest to stem from a yearslong investigation by the CFTC, the Justice Department and European authorities into allegations that top global banks tried to game interest rate and foreign exchange benchmarks.

A half-dozen European banks have already settled criminal or civil claims tied to Libor rigging, but Citi is the first U.S. bank to do so.

Last May, five global banks including Citi and J.P. Morgan Chase & Co. agreed to pay more than $5 billion to resolve probes into whether traders colluded to move foreign currency rates for their own benefit.

The CFTC on Wednesday also accused Citi of falsely reporting rates used to determine U.S. dollar Libor during the 2008 financial crisis to protect its reputation. The bank neither admitted nor denied the agency's findings.

ISDAfix is a financial benchmark used to calculate a wide range of interest-rate products. Firms ranging from hedge funds to manufacturing companies pay a premium for trades designed to protect against fluctuation in interest rates, and those swaps are settled using the ISDAfix rate.

Write to Aruna Viswanatha at Aruna.Viswanatha@wsj.com

(END) Dow Jones Newswires

May 25, 2016 09:55 ET (13:55 GMT)

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