RBS to Pay $612M in Latest Libor Fines

Time to fix banking culture: chairman

By Matt Cantor,  Newser Staff

Posted Feb 6, 2013 10:50 AM CST

(Newser) – Royal Bank of Scotland is the latest bank to owe big following the Libor rate-fixing scandal. The British institution has been fined a total of $612 million to US and British regulators: some $325 million to the US Commodity Futures Trading Commission, $150 million to the Justice Department, and the rest to the UK Financial Services Authority, CNNMoney reports. The money going to US authorities will come from already-paid bonuses, the BBC reports. The bank attempted to manipulate rates hundreds of times, US officials say.

The total fine is $162 million more than Barclays paid in the scandal, but far less than UBS' $1.5 billion. RBS says it has identified 21 guilty employees and all have either exited or been disciplined. Two managers have been let go, and the bank's investment head is also set to leave. "There were serious shortcomings in our systems and controls and also in the integrity of a small group of our employees," says bank chair Sir Philip Hampton. "We have to fix the culture in the banking industry." The bank got a 30% discount on its UK fine because it settled early, British regulators say.

In this Friday, Aug. 3, 2012 file photo, a woman walks by an office of the Royal Bank of Scotland in the City of London.
In this Friday, Aug. 3, 2012 file photo, a woman walks by an office of the Royal Bank of Scotland in the City of London.   (AP Photo/Sang Tan, File)
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