RBS: NEW FINES AMID THE CONTINUING SCANDAL AT THE SCOTTISH INSTITUTION
Courtesy Telegraph UK
The Royal Bank of Scotland has had so much trouble, that recently a BBC analyst declared himself 'an expert' such was the frequency of the institution's presence in the news.
The bank, now 80% state owned, since the partial takeover of the British government following the fallout of the real estate bust and derivative funds, is now grappling with a new fine of over one billion dollar levied against it for fixing the LIBOR rate.
The Libor rate is the rate at which banks can borrow from each other.
Athough the bank has blamed the incident on a few employees and 'faulty' control systems, the government has imposed the hefty fine on the institution after evidence surfaced that it was rigging the rates for interbank borrowing worldwide. The fixing activity lasted from 2006 until 2010.
The bank apparently continued fixing rates even after it learned that an investigation was under way.
The scandal involves more than one country. In fact, RBS has pled guilty and is in agreement with several foreign banks, and the US justice department, for Libor Swiss franc and Libor yen violations and will pay the fine to several parties. In fact the 1.5 billion will be shared by Uk, Us and Switzerland.
The fines were in lieu of a non-prosecution agreement, although the US government is seeking criminal charges against two former UBS traders who were directly involved in the scheme.
Source: Al Jazeera 2.8.13
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