Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
were misrepresented in the prospectus and has requested
a declaratory judgement stating that the defendants acted
illegitimately and must therefore be held liable for the loss
allegedly suffered by investors in Fortis. We maintain the view
that the aforementioned loss of EUR 18 billion has not been
properly substantiated.The proceedings concern a settlement
of collective loss, which means that the court will only rule on
the question of whether the defendants, including Rabobank,
are liable. Depending on the outcome of these proceedings,
it will become clear whether separate loss proceedings are to
be expected. Rabobank is defending itself against the claim; at
present, however Rabobank is unable to assess the outcome of
these or any subsequent proceedings.
Interest rate derivatives in the SME segment
Rabobank provides interest rate derivatives for business
customers who wish to reduce the interest rate risk associated
with variable (e.g. indexed Euribor) loans. Such an interest rate
swap protects customers from rising interest rates and helps
businesses to keep their interest payments at an acceptable
level.
For business customers who have both a loan and an interest
rate derivative, the bank (re)assessed the individual position
in 2014 and 2015. If a closed interest rate derivative no longer
suits the customer's requirements, the bank and the customer
set out to find a solution which is acceptable to the customer.
Solutions vary from adjustments to the transactions to
termination or (partial) compensation. Each of these solutions
is tailor-made, which means that all the circumstances of a case
known to Rabobank, as well as knowledge of the company
concerned, are considered in the assessment.
In December 2015, Rabobank took note of the conclusion
by the AFM that the banks' revaluations of the interest rate
derivatives are unsatisfactory. It has found shortcomings during
its own testing of the revaluations. Rabobank is currently
working with the AFM on a suitable solution to the situation
that has arisen.
Furthermore, there are pending complaints proceedings against
Rabobank regarding interest rate derivatives brought by Kifid
(Dutch Financial Services Complaints Authority, which, in
January 2015, opened an enquiry window for businesses with
interest rate derivatives).
BSA/AML
In 2015, Rabobank concluded a written agreement with
the Federal Reserve Bank of New York and the New York
Department of Financial Services. Under this agreement,
Rabobank is required to, amongst other things, improve the
BSA/AML (Bank Secrecy Act/Anti-Money Laundering) framework
for its American company. In 2013, Rabobank, N.A. (RNA),
a group company, almost entirely owned by Rabobank, agreed
to a Consent Order with the US Office of the Comptroller of
the Currency concerning its BSA/AML programme. American
authorities are investigating the BSA/AML compliance
programme of RNA as well as the historical conduct and
practices involved and have, in this context, requested
documentation and other information to be submitted to them.
Both Rabobank and RNA are providing their full cooperation to
this investigation.
276 Rabobank Annual Report 2015
