Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

RBS braces itself for £500m Libor fine

RBS braces itself for £500m Libor fine

Royal Bank of Scotland has warned investors it faces ‘significant penalties’ for its role in the Libor-rigging scandal with the market expecting it to face a fine of up to £500 million.

Reports suggest investment banking head John Hourican will quit today, albeit with a generous payoff.

In a stock exchange announcement this morning, the bank said it was in late-stage negotiations with the FSA in the UK and the US Commodity Futures Trading Commission and Department of Justice over the nature of the sanctions.

RBS said: ‘Although the settlements remain to be agreed, RBS expects they will include the payment of significant penalties as well as certain other sanctions. RBS will update the market on all pertinent issues relating to this matter shortly.’

The bank is under intense pressure to fund the fine from its bankers’ bonus pool with business secretary Vince Cable demanding that the taxpayer will not foot the bill.

Barclays paid £290 million in fines to the UK and US authorities for its role in the Libor fixing scandal last June, while UBS paid a whopping £953 million.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Play Henderson's Lofthouse on merger boost and political risk

Henderson's Lofthouse on merger boost and political risk

Ben Lofthouse talks through where he is finding income and what surprises await the global economy in the new year.

Read More
Your Business: Cover Star Club

Profile: why Patronus Partners' founder left the only job he ever knew

Profile: why Patronus Partners' founder left the only job he ever knew

'There was a definite idea of how things would work out over 12 months. When we look back, that was inaccurate'

Wealth Manager on Twitter