Royal Bank of Scotland fined $612 mn to settle Libor probe
State-rescued Royal Bank of Scotland will pay fines totalling $612 million (453 million euros) to US and British regulators to settle allegations of Libor interest rate rigging, it announced on Wednesday.
RBS, which is 81-percent owned by the government, said it has agreed to pay the equivalent of £391 million to regulators, becoming the third bank to admit its part in the Libor affair after British rival Barclays and Swiss lender UBS.
The investigations uncovered "wrongdoing" by 21 employees, predominantly in relation to the setting of the bank's yen and Swiss franc Libor submissions between October 2006 to November 2010, the bank said.
RBS added it had been fined $325 million by the US Commodity Futures Trading Commission, $150 million by the US Department of Justice (DoJ) and £87.5 million ($137 million, 101 million euros) by Britain's Financial Services Authority.
The bank has also entered into a deferred prosecution agreement with the DoJ, in relation to one count of wire fraud relating to Swiss franc Libor and one count for an antitrust violation relating to yen Libor.
RBS Securities Japan Limited has agreed to enter a plea of guilty to one count of wire fraud relating to Yen Libor, it added in the statement.
British finance minister George Osborne condemned the "totally unacceptable"...