The LIBOR interest rate-rigging scandal has grown even further, as the Royal Bank of Scotland has been hit with fines of over $600 million for their involvement in manipulating the average interest rate for borrowing between banks.
The fines, leveled by the United Kingdom's Financial Services Authority and the US Department of Justice, are some of the largest in the international investigation so far. The international investigation into the rigging of the LIBOR, AKA the London Interbank Offered Rate, involves more than a dozen international banks.
Barclays and Swiss bank UBS have also been hit by fines for similar involvement in the scandal.
The wrongdoing involved 21 employees, whom RBS said have since been disciplined or left the bank, BBC News reported. John Hourican, the head of the bank's markets and international banking wing, has also lost his job in the wake of the scandal, though RBS said he was not directly involved.
“We condemn the behavior of the individuals who sought to influence some LIBOR currency settings at our bank,” said CEO Stephen Hester, Forbes reported. “There is no place at RBS for such behavior.”
“LIBOR manipulation is an extreme example of a selfish and self-serving culture that took hold in parts of the banking industry during the financial boom,” Hester added. “We will use the lessons learned from this episode as further motivation to reject and change the vestiges of that culture.”
The fines will be paid from bankers' bonuses, CNBC reported.
Here, Hester comments on RBS involvement in the LIBOR rigging: