RBS and other banks fined 1.7bn euro by EC for rate rigging - UPDATE

4th Dec 2013 13:15

Royal Bank of Scotland (RBS) was one of five major banks to be hit with a record-breaking 1.7bn euro fine from the European Commission for their part in rigging interest rates, while Barclays escaped a fine due to its whistleblowing role. RBS, 81% owned by the state, received a £325m fine, around two thirds in respect of the London inter-bank offered rate (LIBOR) with the remainder as punishment for the European equivalent Euribor. Both these payments are covered by provisions already made by RBS, which has accepted the fine.The other banks involved in the cartels were UBS, Deutsche Bank, Citigroup and JPMorgan, Credit Agricole, Societe Generale and broker RP Martin.Barclays and UBS avoided a fine because they revealed the existence of the rate-rigging cartels. But European Competition Commissioner Joaquín Almunia warned that further fines were on the cards as three banks and one broker had refused to settle on other claims.HSBC and Credit Agricole are being investigated but have not yet settled fines, while JPMorgan accepted a fine for rigging in one market but not another."This will not be the end of the story," said Almunia, who added that foreign exchange markets were also facing an investigation for potential manipulation.He added: "What is shocking about the LIBOR and Euribor scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other."RBS Chairman Philip Hampton said: "We acknowledged back in February that there were serious shortcomings in our systems and controls on this issue, but also in the integrity of a very small number of our employees. "Today is another sobering reminder of those past failings and nobody should be in any doubt about how seriously we have taken this issue. The RBS board and new management team condemn the behaviour of the individuals who were involved in these activities. There is no place for it at RBS."OH