Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

RBS braces itself for £500m Libor fine

by James Phillipps on Feb 06, 2013 at 09:29

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 here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment

With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the shares

  • Royal Bank of Scotland Group PLC (RBS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them


On the road

Click here to find out more from the Audience Development team.


Legg Mason to buy Martin Currie

by Eleanor Lawrie on Jul 24, 2014 at 13:59

Sorry, this link is not
quite ready yet