RBS confirms it has sacked staff over Libor affair
State-controlled lender Royal Bank of Scotland confirmed today it had dismissed a number of employees for misconduct as a result of its investigations into the Libor interest rate rigging scandal and along with other banks is still under investigation by regulators.
“The Libor situation is on our agenda and is a stark reminder of the damage that individual wrongdoing and inadequate systems and controls can have in terms of financial and reputational impact,” chief executive Stephen Hester said.
RBS said it was co-operating with investigations by governments and regulators into its submissions and procedures around the setting of Libor and other interest rates.
Last month sources with knowledge of the matter said RBS had fired four traders in connection with the affair.
The bank said it was being investigated by regulators in the US, Britain and Japan and by competition authorities in Europe, the US and Canada.
RBS said it was not possible to reliably measure what effect the investigations would have, including the timing and amount of fines or settlements. Rival Barclays was fined $453m (£291.8m) last month by US and UK regulators.
The bank, which is 82 per cent-owned by the government, also reported on Friday it made a first-half operating profit of £1.83bn, down from £1.97bn in the same period last year.
RBS confirmed it has set aside a further £135m to compensate customers miss-sold loan insurance. It has taken a £125m hit from costs arising from a computer systems failure in June.
It also said the planned flotation of its insurance arm, Direct Line, was on track and planned for October this year.