Skip to main content

The Globe and Mail

Royal Bank of Scotland faces Libor fine of up to $470-million: media report

People walk past a Royal Bank of Scotland (RBS) building in the City of London in this January 12, 2012 file photo.

STEFAN WERMUTH/REUTERS

Royal Bank of Scotland is facing a fine of between 200 million pounds and 300 million pounds (between $313-million and $470-million Canadian) for its role in a global interest rate rigging scandal, the Financial Times reported on Saturday without citing sources.

The FT said part-nationalized RBS is facing similar penalties to Barclays,which paid 290 million pounds in fines having agreed a collective settlement in June with United States and UK authorities over attempts to manipulate the Libor interbank rate.

Reuters reported on August 24 that RBS was expected to reach a similar agreement within the next two months.

Story continues below advertisement

However, a deterioration in the relationship between regulators on either side of the Atlantic could result in RBS settling first with Britain's Financial Services Authority before reaching separate deals in the U.S, the FT reported.

U.S. authorities were accused of attempting to undermine London as a global financial centre during a recent probe into British bank Standard Chartered.

Any delay in reaching settlements with all the regulators would be a blow to RBS. The bank, 82 per cent owned by the government, is under pressure to draw a line under the episode with Britain keen to protect the value of its stake by removing uncertainties over the issue.

RBS, which has sacked four staff in relation to the Libor scandal, said on Saturday it could not comment on when a settlement will be reached or what the level of fines will be. The FSA declined to comment.

More than a dozen banks are under investigation by regulators in the United States, Europe and Asia for suspected rigging of London interbank offered rate, or Libor, and other similar rates which are used to price trillions of dollars worth of financial products.

RBS's Chief Executive Stephen Hester said in August that the bank was ready to "stand up and take any punishment" that comes its way over the issue. Reuters reported in July that RBS and Switzerland's UBS were two of the banks that had played a central role in the manipulation of rates.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.