RBS will pay $610M to settle Libor charges

Feb 06, 2013, 10:45 AM EST
A pedestrian walks past a branch of the Royal Bank of Scotland (RBS) in the City of London February 4, 2013.
REUTERS/Andrew Winning

The Royal Bank of Scotland will pay $610 million to settle U.S. and U.K. investigations into allegations that it manipulated Libor, the benchmark interest rate. The bank’s Japan subsidiary will plead guilty to a U.S. criminal charge of wire fraud. RBS, which is now 82 per cent-owned by U.K. taxpayers, acknowledged that employees – including over 21 traders and one manager – had tried to rig Libor. The settlements are with the U.S. Department of Justice and Commodity Futures Trading Commission, and the U.K. Financial Services Authority. RBS is the third bank to reach settlements in connection with the Libor scandal, following Barclays and UBS.