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 rate rigging 'did not affect UK mortgages'

The bank's traders were based in London, Singapore and Toyko and traded in Swiss Francs and Yen Libor - not Sterling. That means they were not rigging the rates that affect UK mortgages, loan rates or credit cards. This is an important difference between what has happened with Barclays.

Headquarters of the Royal Bank of Scotland in the City of London Credit: Press Association

RBS fined £390m for rigging Libor rates

  • RBS will pay fines of £390 million pounds for the behaviour of 21 members of staff between 2006 and 2010
  • 14 of those staff have already left, 7 are either in disciplinary proceedings or on their way out or were very junior so won't lose their jobs
  • The bank will pay £300 million - the share of the fine to go to the American authorities - through getting back money from bonuses that have already been paid, or this year's bonuses or future payments
  • The other £90 million will come from the investment bank's profits and go to the Treasury


Non-UK fines 'responsibility of the banks'

I am not aware that any announcements have been made by the regulators. If any were made, the Government has made its position very clear.

Banks should take responsibility, and if there are any non-UK fines, those should be the responsibility of the banks and not the taxpayer.

I think that is what you can expect to see if we are in that situation.


Report: RBS investment bank manager to quit with £700k payoff

John Hourican, the head of RBS' investment bank, will today announce his departure from the company with a payoff of up to £700,000, The Times reports (£).

He would become the bank's most senior employee to lose his job over the Libor-fixing scandal.

Hourican was unaware of the rate-fixing activity but was in charge of the division responsible for it, according to the report.

Vince Cable: It makes no sense to 'pass on the costs'

The Royal Bank of Scotland will announce how much it will be fined by the Financial Services Authority and US authorities for its role in the Libor rate-rigging scandal today.

Business secretary Vince Cable will today revive a plan to return the Royal Bank of Scotland to the private sector.

Speaking to ITV Daybreak he said if the country was to recover from the prolonged banks crisis, positive initiatives to get the banks lending again needs to be introduced.


Vince Cable 'to revive' RBS privatisation plan

The Business secretary Vince Cable will today revive a plan to return the Royal Bank of Scotland to the private sector, the Financial Times reports.

It comes as the bank prepares to announce a settlement with the UK's Financial Services Authority and US regulators.

Vince Cable is expected to urge the Chancellor to consider radical measure to privatise RBS.

According to the newspaper, Mr Cable will call for the Chancellor to consider radical measures to ensure the government's 82% stake in the bank is returned to private hands.

The measures would include a giveaway of free shares to the public.

Mr Cable is expected to say hope of privatising the bank “now looks a distant dream, unless at an unacceptable loss”.

RBS boss sends message to staff over Libor scandal

Ahead of the announcement of fines to be paid by the Royal Bank of Scotland over the Libor scandal, its chief executive Stephen Hester sent a message to staff saying it was "the biggest disappointment of our legacy".

We will update you as soon as we can on our progress in resolving investigations into the setting of Libor at RBS. However, inevitably, as and when we do reach resolution, this will be accompanied by further intense media and political interest and criticism.

In many ways, the Group's involvement in this issue has been the biggest disappointment of our legacy and clean up job to date.

What I can promise is that along with our Chairman, Philip Hampton, I will not be ducking the difficult questions that come our way. Philip and I will explain what went wrong and what we have done to fix it. We will also ensure that wrongdoers have been punished.

– RBS Chief Executive, Stephen Hester

RBS investment banking head 'to step down'

The head of Royal Bank of Scotland's investment banking division is expected to step down over the Libor rate-rigging scandal it has been reported.

John Hourican joined the RBS Group in 1997 and has headed its investment banking arm since October 2008.

The news comes ahead of an announcement of the fines over Libor which could be as much as £500m.

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