The bank will announce before it reports earnings on July 31 a fine in that range to settle U.S. and U.K. charges it manipulated major interest rate benchmarks, reports the FT.
Lloyds (LYG +0.3%) - 25% owned by the U.K. government - will be the 7th bank to be fined by authorities over rate-rigging. Alongside the fine announcement will be the release of a number of emails ("What do you got for me big boy?") allegedly showing traders conspiring to manipulate the benchmarks over the period from 2006-09.
The settlement will wipe away one area of uncertainty ahead of the U.K.'s plan to sell a 15-20% stake in the bank back to the public.