European Commission reaches RBS settlement

PUBLISHED: 04 Dec 2013 @ 22:47 | Comments (0) |

The Royal Bank of Scotland Group(LSE:RBS) has reached a settlement with the European Commission, in relation to competition law breaches concerning certain interest rate derivatives referenced to the London Interbank Offered Rate, LIBOR, based on Japanese Yen and the Euro Interbank Offered Rate., URIBOR.

The Commission has handed out fines totaling 1.7bn euros to eight European banks, including RBS which will pay 390m euros to resolve investigations relating to the two rates.

Commenting on the fine RBS chairman Sir Philip Hampton said that ““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.”

In a statement the bank argued that “Since becoming aware in 2011 of improper conduct in connection with rate setting, RBS management has taken action to strengthen significantly the systems and controls governing its submissions of LIBOR and other trading rates. For example: RBS has created an independent and ring-fenced rate setting team; all relevant staff are obliged to undertake a comprehensive training programme; new preventative and detective controls have been put in place that include monitoring and statistical checking of submissions by independent personnel within RBS; and, a Rate Setting Review Board has been created to oversee the submission process.”

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