How Much Will RBS Pay for LIBOR Rigging?
For its role in rigging the London Interbank Offered Rate, or LIBOR, the Royal Bank of Scotland (NYSE:RBS) is expected to be fined between 400 million pounds and 500 million pounds. This approximately $803 million penalty will be much larger than the one given to rival British bank Barclays (NYSE:BCS), which was fined $450 million last June, but smaller than the record $1.5 billion fine given Switzerland’s UBS (NYSE:UBS) last month.
Sources familiar with the arrangement told Reuters that the partly state-owned bank will likely agree to a settlement with U.S. and British regulators next week. However, the exact amount of the fine has not been finalized, and the U.S investigation is still underway.
Earlier in January, RBS announced that it would cut bonuses for its investment bankers in an effort to save more than 100 million pounds to use towards paying its fine.
The investigation into the suspected rigging of LIBOR, which is the primary benchmark for short-term interest rates around the world, spanned twelve banks.