Poor internal controls and lack of supervision formed the background behind the reckless behavior that allowed Royal Bank of Scotland's employees to manipulate LIBOR ratings over a six year period. This is according to the Commodity Futures Trading Commission's enforcement order that detailed the bank's settlement.
RBS has agreed to pay a $612 million fine to U.S. and British regulators to settle charges that the bank’s employees manipulated the London Inter-Bank Offering Rate, a key interest rate that is used as a benchmark by the financial markets. The regulators had accused RBS's derivatives traders of working hand in hand with its LIBOR submitters to manipulate the Yen and Swiss Franc LIBOR so traders could profit from their trading positions.
The developments show a breakdown between the firm’s business and compliance functions, John Alan James, a professor at Pace University's Lubin School of Business, told Compliance Complete.
Like Barclays, which last year agreed to
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