{"id":26113,"date":"2013-02-06T19:02:08","date_gmt":"2013-02-06T18:02:08","guid":{"rendered":"http:\/\/uk.news.yahoo.com\/rbs-fined-270m-us-regulator-130758028--finance.html"},"modified":"2013-02-06T19:02:08","modified_gmt":"2013-02-06T18:02:08","slug":"rbs-hit-with-390m-fine-for-fixing-libor","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/breaking-news\/rbs-hit-with-390m-fine-for-fixing-libor\/","title":{"rendered":"RBS Hit With \u00a3390m Fine For Fixing Libor"},"content":{"rendered":"
\n

Regulators have fined the taxpayer-owned bank RBS a total of more than \u00a3390m for rigging the Libor inter-bank rate.<\/p>\n

Around \u00a3300m of this will be clawed back from the Royal Bank of Scotland’s (RBS) bonus pool after the Government insisted the taxpayer should not pay for bankers’ mistakes.<\/p>\n

The Financial Services Authority (FSA) in the UK fined the bank a total of \u00a387.5m for fixing Libor, and said at least 21 individuals and one manager were involved in inappropriate conduct at the bank.<\/p>\n

The City watchdog, which said RBS bankers worked with traders at other banks to try to manipulate Libor, found almost 220 requests for inappropriate Libor submissions.<\/p>\n

In the US, the Commodity Futures Trading Commission (CFTC) ordered the bank to pay a penalty of more than\u00a0\u00a3207m and the Department of Justice (DoJ) fined the bank \u00a396m.<\/p>\n

The CFTC said RBS, which is 82%-taxpayer owned, was attempting to manipulate the inter-bank lending rate as late as 2010 – with instances dating back to 2006.<\/p>\n

It also published the content of messages between bank employees discussing fixing Libor.<\/p>\n

One senior Yen trader wrote: “this libor setting is getting nutss (sic).”<\/p>\n

Another message said: “its (sic) just amazing how libor fixing can make you that much money.”<\/p>\n

RBS also confirmed that the head of its investment bank will step down, as revealed by Sky News.<\/p>\n

John Hourican, who was brought in to rescue the business after it was bailed out in 2008, will forfeit around \u00a34m in share options<\/strong> awarded to him based on past performance, but leaves with 12 months pay worth \u00a3775,000.<\/p>\n

In a memo to staff at the bank he said he bore “some responsibility” for misconduct<\/strong> , despite having no involvement in or knowledge of efforts to rig Libor submissions by RBS staff.<\/p>\n

The bank’s chief executive, Stephen Hester, told Sky News those involved in manipulating were “disgraceful”.<\/p>\n

“They are wrongdoers – there is no place in our industry for that kind of behaviour,” he said.<\/p>\n

“The issues … are an extreme example of a selfish and self-serving culture which – while being unrepresentative of much of banking – has too many echos in what has gone wrong in the legacy of the financial boom and which we must all be clear needs to be stamped out.”<\/p>\n

Speaking at a Treasury news conference, Chancellor George Osborne, said: “What happened at RBS and other banks is totally unacceptable. At my insistence, the bankers, not the tax payers, will pick up the bill.”<\/p>\n

He added: “Those people who did wrong will face the full force of the law. It is right that the senior management at RBS have taken action today.”<\/p>\n

The bank’s chairman, Sir Philip Hampton, added that it was a “sad day for RBS”, but vowed to “put right the mistakes of the past”.<\/p>\n

The FSA said its portion of the penalty would be donated to military charities.<\/p>\n

As part of its settlement, RBS agreed a deferred prosecution agreement with the DoJ, as revealed by Sky’s City Editor<\/strong> .<\/p>\n

The deal means that if RBS commits any form of criminal offence during the two-year period, it could have grave consequences for the bank’s ability to operate in the US.<\/p>\n

RBS’ Japanese arm pleaded guilty to wire fraud.<\/p>\n

The bank is one of about 20 organisations being investigated for manipulating Libor, the rate banks charge to lend one another.<\/p>\n

It governs the price of more than $500trn (\u00a3320trn) worth of loans and transactions around the world, including mortgages.<\/p>\n

The bank’s fine is significantly higher than Barclays’ \u00a3290m penalty, but less than UBS’ settlement with regulators, worth almost \u00a31bn.<\/p>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

\n

Regulators have fined the taxpayer-owned bank RBS a total of more than £390m for rigging the Libor inter-bank rate.<\/p>\n

Around £300m of this will be clawed back from the Royal Bank of Scotland’s (RBS) bonus pool after the Government insisted the taxpayer should not pay for bankers’ mistakes.<\/p>\n

The Financial Services Authority (FSA) in the UK fined the bank a total of £87.5m for fixing Libor, and said at least 21 individuals and one manager were involved in inappropriate conduct at the bank.<\/p>\n

The City watchdog, which said RBS bankers worked with traders at other banks to try to manipulate Libor, found almost 220 requests for inappropriate Libor submissions.<\/p>\n

In the US, the Commodity Futures Trading Commission (CFTC) ordered the bank to pay a penalty of more than £207m and the Department of Justice (DoJ) fined the bank £96m.<\/p>\n

The CFTC said RBS, which is 82%-taxpayer owned, was attempting to manipulate the inter-bank lending rate as late as 2010 – with instances dating back to 2006.<\/p>\n

It also published the content of messages between bank employees discussing fixing Libor.<\/p>\n

One senior Yen trader wrote: “this libor setting is getting nutss (sic).”<\/p>\n

Another message said: “its (sic) just amazing how libor fixing can make you that much money.”<\/p>\n

RBS also confirmed that the head of its investment bank will step down, as revealed by Sky News.<\/p>\n

John Hourican, who was brought in to rescue the business after it was bailed out in 2008, will forfeit around £4m in share options<\/strong> awarded to him based on past performance, but leaves with 12 months pay worth £775,000.<\/p>\n

In a memo to staff at the bank he said he bore “some responsibility” for misconduct<\/strong> , despite having no involvement in or knowledge of efforts to rig Libor submissions by RBS staff.<\/p>\n

The bank’s chief executive, Stephen Hester, told Sky News those involved in manipulating were “disgraceful”.<\/p>\n

“They are wrongdoers – there is no place in our industry for that kind of behaviour,” he said.<\/p>\n

“The issues … are an extreme example of a selfish and self-serving culture which – while being unrepresentative of much of banking – has too many echos in what has gone wrong in the legacy of the financial boom and which we must all be clear needs to be stamped out.”<\/p>\n

Speaking at a Treasury news conference, Chancellor George Osborne, said: “What happened at RBS and other banks is totally unacceptable. At my insistence, the bankers, not the tax payers, will pick up the bill.”<\/p>\n

He added: “Those people who did wrong will face the full force of the law. It is right that the senior management at RBS have taken action today.”<\/p>\n

The bank’s chairman, Sir Philip Hampton, added that it was a “sad day for RBS”, but vowed to “put right the mistakes of the past”.<\/p>\n

The FSA said its portion of the penalty would be donated to military charities.<\/p>\n

As part of its settlement, RBS agreed a deferred prosecution agreement with the DoJ, as revealed by Sky’s City Editor<\/strong> .<\/p>\n

The deal means that if RBS commits any form of criminal offence during the two-year period, it could have grave consequences for the bank’s ability to operate in the US.<\/p>\n

RBS’ Japanese arm pleaded guilty to wire fraud.<\/p>\n

The bank is one of about 20 organisations being investigated for manipulating Libor, the rate banks charge to lend one another.<\/p>\n

It governs the price of more than $500trn (£320trn) worth of loans and transactions around the world, including mortgages.<\/p>\n

The bank’s fine is significantly higher than Barclays’ £290m penalty, but less than UBS’ settlement with regulators, worth almost £1bn.<\/p>\n<\/div>\n

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