News Column

Royal Bank of Scotland Pays Big Fines for Rate Fixing

Feb 6, 2013

Royal Bank of Scotland (RBS), a bank majority owned by the British government, said Wednesday it is paying more than 610 million dollars in two nations as a penalty for manipulating interest rates.

RBS agreed to pay the Britain's Financial Services Authority 87.5 million pounds (138 million dollars), the US Commodity Futures Trading Commission 325 million dollars and the US Department of Justice 150 million dollars.

The bank admitted wrongdoing, saying it attempted to manipulate the London interbank offered rate (Libor), which is used internationally to set the cost of many sterling loans.

RBS chairman Philip Hampton said the admission and fine marked a "sad day for RBS" and vowed to "put right the mistakes of the past."

Two other banks received fines last year for their part in the scandal.

Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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