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Mon 21 Jan to Sun 10 Feb 2013 to be announced

Announcement made over RBS settlement in Libor scandal

  • By Yafit Lazar and 1 other
  • Last Update: 4 years ago
  • United Kingdom

An announcement is expected to be made over the settlement reached between the Royal Bank of Scotland Group Plc (RBS) and the UK Financial Services Authority, the US Commodity Futures Trading Commission and the US Justice Department, who launched a probe into the bank's interest rate rigging.

The part-nationalised bank is expected to be fined between £400 million and £500 million ($803 million) for its role in the manipulation of the London interbank offered rate (Libor) and other global benchmark rates.

RBS may face pressure to further shrink its investment bank, should an investigation into interest rate rigging show cultural failings persist in the business, political and industry sources have said.

Some sources claim John Hourican, head of RBS's investment bank, and Peter Nielsen, head of markets, may be asked to leave the bank when the settlement is announced.

Chief Executive Stephen Hester has already warned of a "miserable day" for RBS when the penalty is announced, and the bank is braced for the publication of embarrassing e-mails exposing the extent of collusion between traders.

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