National Australia Bank will pay a penalty in the order of A$833,000 per time for an acknowledged 12 instances during 2010 and 2011 when staff on its rates desk "attempted to engage in unconscionable conduct" in the bank bill swap market.On Friday, ASIC and the bank agreed an overall A$50 million settlement over a civil action commenced in June 2016. Only $10 million relates to an actual penalty for NAB's conduct and is subject to court approval. The bank will pay $20 million to a financial consumer protection fund nominated by ASIC. It will also pay a further $20 million for ASIC's legal costs.Twelve instances of dodgy conduct by NAB rates as a climb down from ASIC which, in its claim last year, asserted that "NAB traded in a manner that was unconscionable and intended to create an artificial price for bank bills on 50 occasions during the period from 8 June 2010 and 24 December 2012." ASIC at the time alleged that on those days, "NAB had a large number of products which were priced or valued off BBSW and that it traded in the bank bill market with the intention of moving the BBSW higher or lower." ASIC further alleged "that NAB was seeking to maximise its profit or minimise its loss to the detriment of those holding opposite positions to NAB's."ANZ is yet to elaborate on its statement early last week that it reached an in-principle agreement with ASIC on similar allegations of misconduct in the rates market.ANZ and NAB and also Westpac will appear again in the Federal Court in Melbourne this morning for a hearing which will deal mainly with the two settlements reached by ASIC with NAB and ANZ.At this stage a trial is due to commence on Tuesday in the equivalent BBSW case in which Westpac is defendant, though talks on a settlement between ASIC and Westpac continue.