Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

US and UK regulators hit RBS with £390m Libor fine

1 comment
US and UK regulators hit RBS with £390m Libor fine

The Financial Services Authority (FSA) has fined Royal Bank of Scotland (RBS) £87.5 million for misconduct relating to the London Interbank Offered Rate (LIBOR).

Earlier today the bank warned investors it faced ‘significant penalties’ for its role in the Libor-rigging scandal, while the market was braced for a fine of up to £500 million, taking into account penalties from the US and UK regulators.

The FSA said the misconduct at RBS was 'widespread', with more than 200 requests for inappropriate submissions uncovered, and the bank was lacking in controls to address the risks these created.

'The integrity of benchmark reference rates such as LIBOR is of fundamental importance to both UK and international financial markets.  The findings set out in our notice today demonstrate a failure by RBS to take that wider context into account,' said Tracey McDermott, the FSA's director of enforcement and financial crime.

'During the course of the FSA's work on LIBOR, RBS provided the FSA with an attestation that its LIBOR related systems and controls were adequate.  This was not correct,' McDermott added.

Following the FSA's announcement, US authorities issued a statement outlining their action against RBS.  American regulators fined the bank £07 million, taking the bank's total penalty to £390 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 JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter