RBS fined £390m for Libor scandal
06 Feb, 2013
It has been announced today that the Royal Bank of Scotland (RBS) has been fined for its participation in the Libor rate-rigging scandal.
The bank has been ordered to pay the hefty sum of £390million by authorities in the US and the UK, a fine that is larger by £100 million than that Barclays was handed last year for its involvement in the scandal.
According to George Osborne, the UK’s Chancellor of the Exchequer, the traders’ behaviour was ‘totally unacceptable’ and insisted that the payment of the fines would be coming from the bank, and not taxpayers.
The news will come as a slap in the face to the taxpaying public as RBS was given a huge government bailout in 2008 and is still 81% taxpayer-owned.
According to the BBC, commenting on the fine, the RBS Chairman, Sir Philip Hampton said today was a ‘sad day’ for the bank.
Referring to the wrongdoing uncovered within the bank, Sir Hampton said in a statement: “There were serious shortcomings in our systems and controls and also in the integrity of a small group of our employees.
“We have to fix the culture in the banking industry… the board has used all means possible to ensure the gravity of this issue is reflected in the remuneration received by employees.”