At RBS: A big Libor fine looms

At RBS a big Libor fine looms

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.

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Libor fines to go to search and rescue

Fines levied over the Libor scandal will be given to military charities.

George Osborne said that this will also be extended to search and rescue and £10 million will go to the Guides, cadets and St John's Ambulance.

The Chancellor told MPs that inheritance tax relief will be given to the families of those in the emergency services who die while on duty.

Watch live: George Osborne announces 2014 Budget

How Libor fine money benefits military charities

In his Autumn Statement earlier this month, George Osborne announced a further £100 million of Libor fines would be made available "to reflect our society's debt of gratitude to our servicemen and women, and their families".

Here's how the money is distributed:

Read: Libor rate-rigging fines to help military charities

  • AF&V Launchpad: £907,632 to provide accommodation to veterans in Liverpool and help them secure employment
  • Defence Medical Welfare Service:£896,296 to provide forces personnel across the UK with additional hospital welfare and psychosocial support

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Cash from those with 'worst values' to support charities

George Osborne described those involved in the Libor rate-rigging scandal as "people who demonstrated "the worst of the values in our society".

I am delighted to be able to announce more money for those who are supporting our brave armed forces, veterans and their families.

It is right that money paid in fines by people who demonstrated the worst of the values in our society is now being used to help and support those who demonstrate the very best.

– Chancellor George Osborne

Read: Libor rate-rigging fines to help military charities

Libor rate-rigging fines to help military charities

More than £12 million in fines levied on City rate-riggers will be shared by 24 military charities and good causes.

More than £12 million in fines levied on City rate-riggers will be shared by 24 military charities and good causes. Credit: PA

The latest allocation of funds from the Libor fines pot will be used to fund projects including housing and mental health support schemes for veterans.

Today's announcement means that the £35 million fund has been used to support 96 armed forces charities and good causes.

ICAP deeply regrets 'inexcusable actions' of brokers

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.

Read: Broker's fine for 'libor-rigging'

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ICAP first broker to be fined for Libor 'rate-rigging'

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.

ICAP is the world's biggest interdealer broker Credit: Reuters

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.

Read: Facts about Libor and the banking scandal

Three former ICAP employees charged in the US

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.

Osborne will use Libor fines to support injured troops

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.

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.

– The Chancellor George Osborne
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