Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
The estimate potential losses, and the existing provisions,
are based on the currently available information and are
forthe main part subject to judgements and a number of
different assumptions, variable and known and unknown
uncertainties.These uncertainties may include the inaccuracy
or incompleteness of the information available to Rabobank
Group (especially in the early stages of a case). In addition,
assumptions made by Rabobank Group about the future
rulings or legal or other instances or the likely actions or
attitudes of supervisory bodies or the parties opposing
Rabobank Group may turn out to be incorrect. Furthermore,
estimates of potential losses relating to the legal disputes
are frequently impossible to process using statistical or other
quantitative analysis instruments, that are frequently used to
make judgements and estimates. They are then subject to a still
greater level of uncertainly than many other areas where the
group needs to make judgements and estimates.
The set of cases for which Rabobank Group determines that the
risk of the future outflow of funds is higher than fifty percent
will change from time to time, as will the cases for which
an estimate can be made and the estimated potential losses
for these cases. In practice the results achieved can turn out to
be considerably higher or lower than the estimates of potential
losses in those cases where an estimate of this kind was made.
In addition, losses may be incurred in cases where Rabobank
Group estimated that the risk of this occurring was low.
Rabobank Group may settle legal cases or regulatory
procedures or investigations before reaching an (irrevocable)
fine or determination of liability. They may do so in order to
avoid costs, management effort at this level, or other negative
business consequences and/or regulatory or reputational
consequences of continuing with the disputes relating to
liability, even if Rabobank Group is of the opinion that it has
arguments to defend itself against such liability. It may also
do this when the potential consequences of losing a case are
disproportionate to the costs of a settlement. Furthermore,
Rabobank Group may, forthe same reasons, compensate third
parties for their losses, even in situations where Rabobank
Group does not believe that it is legally required to do so.
Libor/Euribor
Rabobank has received a number of requests in recent years
from regulators in various countries to issue documents and
other information in relation to various issues, including issues
related to the provision of statements for laying down interest
rate benchmarks. Rabobank is cooperating, and will continue to
cooperate, with the regulators and authorities involved in these
global investigations.
On 29 October 2013, Rabobank entered into a settlement
agreement with various authorities in relation to their
investigations into the historical Libor and Euribor submission
processes of Rabobank. Additional information is available
on the bank's corporate website. All amounts payable under
this settlement agreement were fully paid and accounted for
by Rabobank in 2013. Additionally, some of these settlement
agreements required Rabobank to: (i) improve measures
or to continue their implementation; and (ii) to cooperate
on a continuous basis with ongoing investigations into the
conduct of Rabobank and of its current and former employees
and representatives (including managers and directors) in
respect of the manipulation, attempts of manipulation or
mutual coordination between banks for establishing interest
rate benchmarks. Rabobank continues to comply with all its
obligations under these settlement agreements.
Rabobank, along with a large number of other panel banks
and inter-dealer brokers, has been mentioned in connection
with a number of class action suits and individual civil court
cases brought before the Federal Courts in the United States.
These proceedings relate to the US Dollar (USD) Libor, British
Pound Sterling (GBP) Libor, Japanese Yen (JPY) Libor, Tibor (note:
Rabobank was never a member of theTIBOR panel) and Euribor.
In 2014, an Argentinian consumer protection organisation
brought an alleged class action suit against Rabobank in
Argentina in relation to USD Libor. Rabobank has also been
summoned to appear before several Dutch courts in civil
proceedings relating to EURIBOR. Furthermore, various
individuals and entities have made a number of allegations
relating to Euribor in letters to and legal proceedings against
Rabobank and/or an Irish subsidiary.
Since the alleged class action suits and civil proceedings listed
above, which have been brought before the courts in the US or
elsewhere, are intrinsically subject to uncertainties, it is difficult
to predict their outcomes. Rabobank takes the stance that it has
substantive and convincing legal and factual defences against
these claims. Rabobank has the intention to continue to defend
itself against these claims.
Fortis
'The Dutch Investors' Association' (VEB) has issued a summons
against the company formerly known as Fortis N.V. (currently
trading as Ageas N.V.), the underwriters involved - including
Rabobank - and the former directors of Fortis N.V.The VEB
states in this summons that investors were misled by the
prospectus published by Ageas N.V. in connection with its rights
issue in September 2007. The VEB states thatthe impact and
risks of the sub prime crisis for Fortis and its liquidity position
275 Notes to the financial statements of Rabobank
