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The Royal Bank of Scotland was humiliated by financial watchdogs today, who fined it nearly £400 million pounds for rigging a key interest rate.
Incredibly, traders continued their deception and collusion, two years after it was bailed out by taxpayers and after regulators had begun their investigation.
ITV News Business Editor Laura Kuenssberg reports:
Stephen Hester, the CEO of the Royal Bank of Scotland, said he would try to "rescue" the under-fire bank from a "mess", unless told otherwise:
Chancellor George Osborne has condemned the "totally unacceptable" behaviour at RBS over the Libor rate, and insisted the taxpayer would not pick up the bill for fines.
In a statement to the House of Commons, Financial Secretary to the Treasury Greg Clark said the manipulation of Libor was "motivated by greed" and the findings against RBS were "grave":
In a message to RBS staff, the bank's boss Stephen Hester said:
"But we will also make the case for all of you who are working tirelessly to serve our customers and turn this bank around.
"The vast majority of you are doing us proud every day. I will talk more at the relevant time about how we can harness the lessons of this episode to good use. We have achieved a great deal, but we have a lot of work in front of us.
"I know that whatever knocks we take I can count on all of you to stay focused on building this company into the sort of bank we want it to be for our customers."
In extracts from the report by the Commodity Futures Trading Commission in the US, a senior Yen trader boasts about how RBS succeeded in moving six-month Yen Libor and then discussed what false story they could give to justify a low submission:
Records show the conversation continued:
"We will say we lower every tenor .. 1m 3m 6m .. we feel rbs name has very good credit .. no problem getting money in good way to boost share price! our 3m libor is at top end ... 6m at bottom end ... just the ideal level!"
Latest ITV News reports
14 of those staff have already left following the Libor rate rigging scandal.
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