RBS facing £400m Libor penalty
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.