RBS fined $612m for Libor violations
- Published: 7 Feb 2013 at 00.02
- Online news:
LONDON - State-rescued Royal Bank of Scotland will pay fines totalling $612 million (453 million euros) to US and British regulators to settle allegations of Libor interest rate rigging, it announced on Wednesday.
RBS, which is 81-percent owned by the government, said it has agreed to pay the equivalent of pound sterling391 million to regulators, becoming the third bank to admit its part in the Libor affair after British rival Barclays and Swiss lender UBS.The investigations uncovered "wrongdoing" by 21 employees, predominantly in relation to the setting of the bank's yen and Swiss franc Libor submissions between October 2006 to November 2010, the bank said.RBS added it had been fined $325 million by the US Commodity Futures Trading Commission, $150 million by the US Department of Justice (DoJ) and pound sterling87.5 million ($137 million, 101 million euros) by Britain's Financial Services Authority.The bank has also entered into a deferred prosecution agreement with the DoJ, in relation to one count of wire fraud relating to Swiss franc Libor and one count for an antitrust violation relating to yen Libor.RBS Securities Japan Limited has agreed to enter a plea of guilty to one count of wire fraud relating to Yen Libor, it added in the statement.British finance minister George Osborne condemned the "totally unacceptable" behaviour at the bailed-out bank and insisted the taxpayer would not pick up the bill."Those responsible will face the full force of the law," Osborne told reporters.The Edinburgh-based lender, which was rescued with taxpayers' cash at the height of the global financial crisis, said that it would recoup about pound sterling300 million from its staff bonus pool and by clawing back previous pay awards.John Hourican, chief executive of the bank's Markets and International Banking division, is meanwhile to leave RBS and will forfeit his 2012 bonus and long-term incentive shares."This is a sad day for RBS, but also an important one in continuing to put right the mistakes of the past," Royal Bank of Scotland chairman Philip Hampton said in the statement."That is why those responsible have left the organisation or been subject to disciplinary action."RBS said its derivative traders sought to influence the bank's yen and Swiss...
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.