It was recently announced that Barclays has agreed to pay $100 million in exchange for the dismissal of claims pursued against it by several dozen states alleging that it manipulated Libor and other benchmark interest rates between 2005 and 2009 to conceal financial issues. As part of the settlement terms, Barclays is not required to admit liability. However, $93.5 million of the settlement amount is restitution for victims of the manipulation and costs that the New York and Connecticut attorneys general spent in investigating the Libor violations. The articles reporting on the settlement have made a point to note that Barclays is the first bank to enter into a settlement with the states. As such, it is possible that we may see more such settlements with other banks in the near future. Although Barclays was not required to admit liability, the majority of the money it has agreed to pay has been characterized as restitution. The remaining amount is likely considered a fine or penalty. Given exclusions for such payments (i.e., restitution, fines and penalties) in most Bankers Liability Policies, the settlement amount may be considered to be borne solely by Barclays.