A strange thing is going on behind the scenes at RBS at the moment as the bank we own tries to deal with the Libor fixing fallout.
The City regulator will condemn the "shocking" behaviour of traders in the old rates setting system, but will refuse to scrap it altogether.
By late tomorrow we'll have a good idea on how the system of setting interest rates between banks, the Libor, is to be reformed.
Labour are calling for Michael Spencer - whose firm ICAP was fined in the Libor scandal - to be banned from the Conservative Party conference.
Michael Spence, the chief executive of city broker ICAP, has said it "deeply regrets" the "inexcusable actions" of its brokers involved in manipulating Libor rates.
Their conduct contravenes all that ICAP stands for. As soon as their actions came to light, we provided assistance to regulators in the US and UK to understand what had happened.
None of the three individuals at the centre of the activity remains with the firm. Others are either no longer with the company or are being disciplined.
There were no findings that any senior management were involved in this matter nor that the firm engaged in deliberate misconduct.
The former Conservative Party treasurer also said the firm, which employs 5,000 people around the world, had learned lessons and would further improve its risk and compliance systems.
ICAP is the first broking firm to be fined over the Libor scandal, following a £290 million penalty for Barclays, £940 million for Swiss bank UBS and £391 million for the Royal Bank of Scotland.
It centres on manipulation of the rates which govern the price of hundreds of trillions of pounds of loans and transactions around the world, including household mortgages.
The Financial Conduct Authority (FCA) said the misconduct by London-based ICAP Europe Limited involved a "significant number of brokers" including two managers between October 2006 and November 2010.
It involved brokers colluding with traders at UBS to manipulate Japanese yen Libor rates for the benefit of the traders.
City broker ICAP has been fined by regulators and three of its former employees have been charged in the US over allegations of Libor manipulation.
The firm, run by former Conservative Party treasurer Michael Spencer, is the fourth organisation to be penalised following the scandal over the rigging of the inter-bank lending rate.
America's Commodity Futures Trading Commission found that ICAP brokers, including one known as "Lord Libor", helped fixed the rate for a period of at least four years.
It fined ICAP £40.5 million while in London the firm was fined £14 million by the Financial Conduct Authority (FCA).
In a simultaneous announcement, the US Department of Justice announced that it was charging former brokers Darrell Read - who lives in New Zealand - as well as Daniel Wilkinson and Colin Goodman, from England, with fraud.
City broker ICAP has been fined £54 million by US and UK regulators over its role in Libor rate-rigging.
George Osborne has told the BBC's Andrew Marr programme that recent fines paid by some of Britain's biggest banking firms will be used to provide treatment and support to injured soldiers.
– The Chancellor George Osborne
I want to make sure that as a society we don't forget about these people long after the war is over so we are committing for the rest of these people's lives to support the military covenant, to support them, to go on spending £10 million a year on these sorts of causes.
We can do this in part because we are using the money we have taken off bankers involved in the Libor scandal. So the people who demonstrated the very worst of British values in the Libor scandal, in the City, are now supporting those who have demonstrated the very best of British values.
Royal Bank of Scotland has detailed the “material impact” of “conduct issues” as part of its 2012 annual figures, these include:
- A £450 million charge in relation to Payment Protection Insurance (PPI)
- RBS provided £50 million over structured collar products
- A further charge of £650 million over interest rate hedging products
Penalties of £381 million will be paid for Libor and other trading rates following an agreement with the Financial Services Authority earlier this month.
Three military charities are to be given money from fines imposed on banks for their involvement in the Libor rate-fixing scandal, Chancellor George Osborne has announced.
The three charities to get a share of £1.3m are the Felix Fund, Tickets for Troops and Soldiers, Sailors, Airmen and Families Association.
Mr Osborne told the BBC: "I wanted to take money that was paid in fines by people who, frankly, demonstrated the worst of the values in our society and help support those who demonstrate the very best values in our society - and those are the soldiers and sailors and airmen who fight on our behalf".
Don't care about the banks? Look away now... as this is going to be a very important, and probably bruising week.
The Chancellor is expected to give the Bank of England power to split misbehaving banks up, bank bosses and the new Governor will appear in front of MPs and RBS' Libor fine is likely.
Chancellor George Osborne has told the state-backed Royal Bank of Scotland that bankers' bonuses must cover any international fines imposed for the Libor rate-rigging scandal, a senior Treasury source has said.
Senior RBS figures, bracing themselves for a major penalty from US regulators, were apparently warned that use of taxpayer funds to cover any penalties would be 'totally unacceptable'.
The Treasury source said: "The Chancellor has made it clear that on this occasion the bill for any US fine should be paid for by the bankers, and not the taxpayer."