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RBS fined $612 million for Libor rigging, investment bank head to leave, industry probe continues

Feb 06 2013 Matt Scuffham, Reuters

Royal Bank of Scotland will pay $612 million to U.S. and British authorities to settle allegations it manipulated benchmark interest rates, and British regulators warned there is more to come in the global investigation. RBS became the third bank to pay fines in the Libor scandal. The British bank, which is 82-percent-owned by the state after the world's costliest bank bailout in 2008, said on Wednesday it was cutting bonuses to help pay for the fine, in a bid to avoid a public backlash. The bank fears the scandal will embolden critics who want it to further shrink its profitable investment bank and focus on basic lending at home. "What happened at RBS and other banks is totally unacceptable," Britain's finance minister, George Osborne, told reporters. Britain's Financial Services Authority (FSA) signalled more large fines were in the offing. "The size and scale of our continuing investigations remains significant," said Tracey McDermott, director

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