RBS facing £400m Libor penalty

6 February 2013

Royal Bank of Scotland are once again looking at massive fines, this time warning the stock market that they could well be coughing-up £400m for their role in rigging Libor. The bank will also admit to criminal charges too, and seeing as we own them, it makes criminals of us all.

"RBS confirms that it is in late-stage settlement discussions with these authorities. Although the settlements remain to be agreed, RBS expects they will include the payment of significant penalties as well as certain other sanctions," said RBS.

As the taxpayer owns 80% of the banking group, will we all be responsible for the debt? Vince Cable and Gideon Osborne are asking RBS to ensure that a portion of the fine will come from the pay of RBS bankers.

Furthermore, Cable wants to look at the future of ownership of RBS Group: "For the existing semi-state-owned companies, there is a range of options, from reprivatisation at a later stage to continued public ownership or mutualisation through public share distribution, as advocated by the Liberal Democrats. We should keep all of these options in play."

RBS will be the third bank to be fined for Libor rigging after Barclays were slapped with a £290m fine and Swiss bank UBS got hit with an eye-watering £940m.

TOPICS:   Banking   Investments   Government

6 comments

  • Dick
    If they have done wrong, then there should be jail terms in addition to fines.
  • Jerec
    Problem is, you know exactly who will be paying the £400m bill, us bloody customers.
  • Captain C.
    Dick and Jerec are both correct; however Jail will never happen because of UK laws being useless. Perhaps the government can force the RBS board to use executive/management bonuses to pay the fine - ie no bonus for anyone above shop floor staff until the fine is paid off. As long as the "corporate entity" keeps paying these fines, the PEOPLE committing/ignoring the misdemeanours have no real incentive to stop.
  • Darren
    You can not make people in this industry give up there bonus or they will walk and go to another bank, most of the kind of people you are talking about will have it written into their contract.
  • Kevin
    They mentioned on the news this morning where the money from fines goes from all the agencies like ofcom etc. It goes to the taxpayer so don't worry too much.
  • Captain C.
    SO THE GOVERNMENT IS PAYING THE GOVERNMENT FINES?? THAT IS A REAL INCENTIVE TO STOP BEING A NAUGHTY BOY!!! SORRY, CAPS KEY IS STUCK :-o

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