RBS has agreed to pay penalties of £87.5 million, $325 million and $150 million to the FSA, CFTC and DOJ respectively, to resolve the investigations. As part of the agreement with the DOJ, RBS plc has entered into a Deferred Prosecution Agreement in relation to one count of wire fraud relating to Swiss Franc LIBOR and one count for an antitrust violation relating to Yen LIBOR. RBS Securities Japan Limited ("RBSSJ") has also agreed to enter a plea of guilty to one count of wire fraud relating to Yen LIBOR.
Regulatory findings
The investigations uncovered wrongdoing on the part of 21 employees, predominantly in relation to the setting of the bank’s Yen (JPY) and Swiss Franc (CHF) LIBOR submissions.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The key findings from the investigations are as follows:
JPY and CHF derivative traders sought to influence the Bank’s JPY and CHF LIBOR setters in the period October 2006 to November 2010;
Two RBS traders based in London colluded with other banks and brokers in making and receiving requests for higher and lower JPY and CHF LIBOR;
RBS’s JPY, CHF and US Dollar money market traders on occasion considered their own money markets books as a factor in their LIBOR submissions.
The findings also highlight serious failures in the controls and risk management systems RBS had in place. However, none of the regulators in question concluded that RBS, as a firm, had engaged in any deliberate misconduct. There are no findings that anyone beyond individual traders and, in some instances, their immediate supervisors, was aware of, or instructed, any deliberate manipulation of submissions, nor is there any finding that RBS suppressed LIBOR submissions at the direction of senior management.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
