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US and UK regulators hit RBS with £390m Libor fine
by Sarah Miloudi on Feb 06, 2013 at 13:13
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.
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