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Libor scandal: RBS fined £390m Libor scandal: RBS fined £390m
(35 minutes later)
Royal Bank of Scotland (RBS) has been fined £390m ($610m) by UK and US regulators for its part in the Libor rate-fixing scandal. 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 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 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.
In a statement, the bank said investigations had uncovered wrongdoing by 21 employees.In a statement, the bank said investigations had uncovered wrongdoing by 21 employees.
All 21 have either left or been disciplined, it said.All 21 have either left or been disciplined, it said.
RBS is the third major bank to admit attempting to manipulate Libor, after Barclays and Swiss bank UBS. RBS said that £300m of the fines would be paid using money clawed back from bonuses already paid, and reductions to future bonuses.
"The findings also highlight serious failures in the controls and risk management systems RBS had in place," the statement read. It is the third major bank to admit attempting to manipulate Libor, after Barclays and Swiss bank UBS received fines last year.
"However, none of the regulators in question concluded that RBS, as a firm, had engaged in any deliberate misconduct. Chairman Philip Hampton said it was a "sad day for RBS".
"There are no findings that anyone beyond individual traders and, in some instances, their immediate supervisors, was aware of, or instructed, any deliberate manipulation." 'Widespread misconduct'
"There were serious shortcomings in our systems and controls and also in the integrity of a small group of our employees," he said in a statement.
"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."
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The FSA said the misconduct at RBS was "widespread" and had involved "a number of employees and occurred over a number of years".
It 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.
RBS's Japanese subsidiary has pleaded guilty to one count of wire fraud relating to the manipulation as part of the settlement with US regulators.
The bank has entered into a deferred prosecution agreement with the US Department of Justice on other charges.
The head of RBS's investment banking arm, John Hourican, will also leave the bank, it has been confirmed.