RBS fined £390m over Libor

The Royal Bank of Scotland has been fined £390m by the Financial Services Authority and US authorities for its role in the Libor rate-rigging scandal.

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RBS fined £390m over rate-rigging scandal

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:

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Taxpayer won't pay the price of RBS failings

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":

This is another day of shame for Britain's banks, and it is vital that we recognise it as such, not because Britain stands alone in this and similar scandals - which, as we know, is far from being the case - but because Britain must stand out in the way we put things right.

So let there be no excuses. Instead, let us have enduring, fundamental reform and let us have justice too.

Any organisation or individuals found guilty of a crime must take full responsibility and should be punished by law, while the ordinary taxpayer must not and will not pay the price of their misdeeds.

RBS staff working 'tirelessly' to turn bank around

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."

Chief executive of the Royal Bank of Scotland, Stephen Hester Credit: Press Association

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Trader boasts over rate manipulation

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:

Extract from CFTC report Credit: COMMODITY FUTURES TRADING COMMISSION

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!"

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