RBS fined over rate fixing
Tax payer owned bank third to be sanctioned
Royal Bank of Scotland (RBS) has been fined £390m ($610m) by UK and US authorities for its part in the Libor rate-fixing scandal.
The BBC yesterday reported that the UK's Financial Services Authority issued a fine of £87.5m, while about £300m will be paid to US regulators and the US Department of Justice.
The FSA revealed that the bank qualified for a 30% discount on its fine because it agreed to settle at an early stage of the investigation. Without the discount the fine would have been £125m.
FSA's head of enforcement Tracey McDermott says there was "extensive wrongdoing" at RBS
RBS has fired 4 traders and suspended the Head of Rates Jezri Mohideen, after an internal investigation.
The bank said that the £300m owed to US authorities would be paid using money clawed back from bonuses already paid, and reductions to future bonuses.
Last year Barclays was fined £290m while Swiss bank UBS will pay out £940m for similar offences.
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