Royal Bank of Scotland expects 'significant penalties' in LIBOR probe

The Royal Bank of Scotland confirmed Wednesday it was in late-stage settlement discussions with authorities in a LIBOR investigation and expects to pay 'significant penalties'.

The Royal Bank of Scotland confirmed Wednesday it was in late-stage settlement discussions with authorities in a LIBOR investigation and expects to pay 'significant penalties'.

RBS said it was in final talks with regulators in the Britain and the US in relation to a probe into interest rate rigging.

"Although the settlements remain to be agreed, RBS expects they will include the payment of significant penalties as well as certain other sanctions," the bank said in a statement.

"RBS will update the market on all pertinent issues relating to this matter shortly."

The bank, which is 81% state owned, is expected face criminal charges and a £500m fine for its role in the LIBOR scandal.

RBS is one of about 20 banks under investigation for involvement in manipulating the rate, which governs the price of loans and transactions around the world, including household mortgages. Barclays was recently fined £290m by US and UK regulators.

The statement from RBS comes a day after it emerged investment banking boss John Hourican was resigning at the end of the month.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Nuclear power might never be popular – but now looks a good time to invest
Commodities

Nuclear power might never be popular – but now looks a good time to invest

Nuclear power gets a very bad press, but it is the ultimate renewable energy source. Interest in it is perking up again, says John Stepek. Which means…
9 Apr 2021
House prices: from boom to even bigger boom
House prices

House prices: from boom to even bigger boom

UK house prices have risen to new to record highs, says Nicole Garcia Merida. Demand continues to outpace supply, but continued low interest rates, th…
9 Apr 2021