Uncle Sam Goes After Lloyds TSB, Bank of Cyprus

Nick Parmee

17 October 2007

US prosecutors have issued civil money laundering charges against Lloyds TSB Bank and the Bank of Cyprus, saying that they helped launder hundreds of millions of dollars from an alleged insider trading fraud. The US government is seeking penalties of at least $130 million from Lloyds TSB Bank and at least $162 million from Bank of Cyprus, according to the US attorney's office in New York. Lloyds TSB group spokeswoman Mary Walsh said: "We do not believe that there is any basis for this action, so we are disappointed that the US government has commenced proceedings in this case. We intend to defend the action vigorously and are confident that the bank's stance will be vindicated."