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RBS fined £390m over Libor failings

by Alex Steger on Feb 06, 2013 at 13:24

RBS fined £390m over Libor failings

The Royal Bank of Scotland (RBS) has been hit with fines totalling £390 million over its Libor failings.

It was fined £87.5 million by the Financial Services Authority (FSA).

The US Commodity Futures Trading Commission fined it $325 million (£207m) and the US Department of Justice fined it $150 million (£95m).

The banks has pleaded guilty to one count of wire fraud relating to Yen Libor and entered into a deferred prosecution agreement 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 chief executive Stephen Hester said: ‘I want to speak very clearly and on behalf of the 137,000 employees of RBS. We condemn the behaviour of the individuals who sought to influence some LIBOR currency settings at our bank from 2006-10. There is no place at RBS for such behaviour.’

A joint investigation between the FSA, the CFTC, the DoJ, the Federal Bureau of Investigation (FBI), the Monetary Authority of Singapore (MAS) and the Japanese Financial Services Authority (JFSA) uncovered wrongdoing on the part of 21 RBS employees, predominantly in relation to the setting of the bank's Yen and Swiss Franc Libor submissions.

The investigation found:

  • Yen and Swiss france derivative traders sought to influence the Bank's Yen and Swiss franc Libor setters in the period October 2006 to November 2010;
  • Two RBS traders based in London colluded with other banks and brokers in making and receiving requests for higher and lower Yen and Swiss franc Libor;
  • RBS's Yen, Swiss franc and US dollar money market traders on occasion considered their own money markets books as a factor in their Libor submissions.

RBS said all 21 wrongdoers referred to in the regulatory findings have left the organisation or been subject to disciplinary action.

Six have been dismissed for Libor related misconduct, including two managers.

Six have been severely disciplined or are going through a disciplinary process.

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14 comments so far. Why not have your say?


Feb 06, 2013 at 13:34

failings/fixing/systemic manipulation of central global control. Whats in a word...

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l'ifa passeport en provenance de France

Feb 06, 2013 at 13:39

So thats the banksters bonus now becoming the FSA's ....... Robin Hood would be proud!

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Feb 06, 2013 at 13:45

Six dismissed and six "severely disciplined". Big deal, why aren't any of them spending time at her majestys pleasure?

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Pride in Britain via mobile

Feb 06, 2013 at 14:00

Nice side- step by Mr Hester. Whatever happened to the master being liable for the actions of his servants. So either he has no idea how his (our) organisation works - incompetent ! Or if he did then he and his board should do the decent thing and Walk. Isn't it a pity that the perpetrators just resigned. Soft option, no doubt well guided by the banks own HR gurus.

If I screw a client for 10p I would expect to be banned, prosecuted and wiped out financially. I'm sure Mr Sants is having a right old chuckle. Maybe there will he room at the Barclays inn for some of these pillars of UK banking.

I do feel for the ordinary staff who take one for the Team.

Lucky for the government that Gay Marriage is topping the presses today.

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Michael Brown

Feb 06, 2013 at 14:01

Therefore as the bank is based in the UK why do the US have some £300m of the fines. Is this a way to bail out the US or what?

I am not condoning the fine but why the 75% to go to the US?

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Feb 06, 2013 at 14:21

If all the regulatory fines are supposed to go to the FSA to cover the costs of regulation, can I expect a refund or discount any time soon? The fines this year alone must exceed £1billion which is approximately two years of regulatory costs.

Just saying..............

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complacency rules

Feb 06, 2013 at 14:28

The ruling uses the word fraud, and part of the fine is from the US Department of Justice, the assumption is that the fiddling of the LIBOR rate was illegal and against FSA rules. The FSA register contains a section relating to disciplinary actions, are these dismissals etc being recorded there and are the individuals being pursued in the criminal courts? Alternatively, are they free to seek similar employment elsewhere? I appreciate that current and future bonuses are being restricted to part pay for these fines, but what about the bonuses of those who benefitted from this fraud in the past. Surely profits from illegal activities can be claimed by the authorities.

Why are the authorities not pursuing crominal action and seeking to claim back illrgal gains?

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Ian Lees

Feb 06, 2013 at 14:32

The Robbing Bank of Scotland with royal assent from her majesty ( which owns Couts - " the queens bank ", and the taxpayer fined £ 390 Million from the forces of the FSA . I suppose they signed a cheque - as they are bankrupt and have no solvency - being bailed out by the entire populationof the currently United Kingdom - and when Scotland obtains independence - under Slamon and Sturgeon - it will be English taxpayers who pay for the priveledge to pay Hesters fines ! This is a sort of Chris Hune of Banking - liies lies lies - then admission - and " sorry ". No one is penailised no one goes to prison - no one has committed a crime as it is washed under the carpet of corruption - under UK Government. If only we had enough Police officers ?

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Feb 06, 2013 at 15:20

Just to be clear, we British taxpayers own RBS so have had all the pain of bailing it out. The FSA, another branch of Government, fine it thereby reducing the value of what is a State owned asset. To compound the misery we accept a fine from another State to further deprive UK taxpayers. Can someone please explain what the end game is here?

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Feb 06, 2013 at 16:14

Smoke and Mirrors. It suits the regulator to dish out fines like this. It makes it look as if the world would collapse without them when in reality the cost more than they generate. Where is the cost/benefit analysis of the FSA.

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Chris Holmes

Feb 06, 2013 at 16:20

@Pride of Britain

Hester was clear on the dates as he was not in charge at that time; it was Fred Goodwin (formerly Sir and happily retired on a massive taxpayer-backed pension).

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dominic browning

Feb 06, 2013 at 21:18

the fine would have been good news for FSCS levy payers - except that osborne is now keeping the fines rather than offsetting them against our FSCS fees. This government pretends to stand up for small businesses, cut red tape etc. it does nothing of the kind and for the first time ever I will seriously consider voting something other than Tory.

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Paul, Dublin

Feb 10, 2013 at 17:57

Words fraud me.

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Ian Lees

Feb 10, 2013 at 19:08

It appears you need a knighthood - to conduct oneself like an imbecile - a thug - a thief - and protected by Her Majesty and Her Majesty's Government ? Protectionism - in all its shades - protection from prosecution, protection from Police - all during abuse of priveledges, abuse of position eg Director or Chairman . . . just a rogue trader - protected form criminal charges - for offences against the Nation - against the public. Where is the " Office of Fair Trading ", or Officers from The Police ( no wonder their numbers have been cut ?). Like the Directors of NHS Trusts - the death camps for Cameron and Clegg - to reduce pensions . . . and their abject failure to control, or monitor - these are negligence and Corporate NEgligence - except the NHS Trusts where they are in my opinion Corporate Homicides - a result of negligence and abject failure by those in charge - and whilst on theri watch these abject failures - get promoted ? ? ? ? What kinf of idiot does that !? ! a conservative idiot who like Huhne thinks he can lie and ge taway with it . . . or at very least lie to Parliament, Lie to his Peers and Lie to the public - as an MP who has a duty of care and principles to uphold.

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