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 Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter