‘Disgraceful…wrongdoers’ who have ‘no place in the banking industry’, that’s how Stephen Hester the Chief Exec of Royal Bank of Scotland has labelled the 21 staff who were identified as being involved in rigging the interbank lending rate, known as LIBOR. The staff are said to have manipulated Yen and Swiss Francs in particular and for that RBS - which is the third bank after Barclays and Swiss firm UBS to be fined over this issue – now has to cough up £390m worth of fines.
£87.5m of that has to be paid to UK’s Financial Services Authority, the lion’s share to authorities in the US: £207m to the Commodity Futures Trading Commission and £96 to the Department of Justice.
The FSA said in a statement At least 21 individuals including derivatives and money market traders and at least one manager were involved in the inappropriate conduct." They’ve now either been disciplined or have left the bank.
John Hourican, the bank's investment chief who was brought in to rescue RBS after it was bailed out in 2008 will leave the bank with immediate effect. In fact he’s admitted today he bears some responsibility for what’s happened. He’s also forfeited the £4m worth of share options he was due.