UK's RBS to get Libor punishment next week: Sources
Royal Bank of Scotland will next week agree a settlement with US and British authorities for its part in a global rate rigging scandal, sources familiar with the situation told Reuters.
February 02, 2013 / 14:54 IST
Royal Bank of Scotland will next week agree a settlement with US and British authorities for its part in a global rate rigging scandal, sources familiar with the situation told Reuters.
The bank is expected to be fined between 400 and 500 million pounds for the attempted rigging of the London interbank offered rate (Libor) and other benchmark interest rates. Details of the punishments will be revealed on Tuesday or Wednesday, the sources said.RBS and the UK's Financial Services Authority (FSA) declined to comment.Yes Bank says interested in RBS India retail assetRBS, which is 81 percent owned by the British taxpayer, will be the third bank after Barclays and UBS to settle with regulators investigating the affair.RBS's punishment will be greater than the USD 450 million fines paid by UK rival Barclays, but well short of the record USD 1.5 billion fines handed out to Switzerland's UBS.More than a dozen banks around the world have been scrutinized by regulators as part of an investigation into the suspected rigging of interbank rates, which are used to price trillions of dollars of financial instruments.RBS hopes to save over 100 million pounds to help pay the fines by slashing bonuses for its investment bankers, a source familiar with the situation told Reuters in January.The bank is also expected to part company with John Hourican, head of RBS's investment bank, at the time of the settlement. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
