Royal Bank of Canada today announced that it has reached a settlement in its dispute with Cooperative Centrale Raiffeisen Boerenleenbank, B.A., the large Dutch cooperative bank
known as Rabobank.
The 18-month-old dispute arose over Rabobank’s refusal to meet its
payment obligation under a US$517 million swap transaction between the two
banks signed in January 2001.
Royal Bank of Canada indicated that the confidential settlement announced
today would result in a reduction to Net Income After Tax of C$74 million for
the first quarter of 2004.
Paul Wilson, a spokesman for RBC Capital Markets, the bank’s corporate
and investment banking arm said, “The settlement will allow us to put this
matter behind us without the further expense and distraction of continued
litigation.”
The dispute between the two banks has been the subject of protracted
litigation in London and New York since June 2002. Court approval of the
settlement is not required in either New York or London.
