Royal Bank of Scotland may pay as much as $804m in fines next week to settle allegations traders tried to rig interest rates, two people with knowledge of the matter said.
Bloomberg reports that investment banking chief John Hourican and Peter Nielsen, the head of markets, may also be asked to leave because they had responsibility for the parts of the company where the alleged wrongdoing occurred, even though they may not have had direct knowledge of the behavior, said two people, who declined to be identified because the talks are private.
The fine would be the second-largest levied by regulators in their investigation into allegations traders at the world’s biggest lenders manipulated submissions used to set the London interbank offered rate. UBS was fined $1.5bn in December for rate-rigging, exceeding the 290 million pounds Barclays Plc paid in June.
The rate-rigging allegations are the biggest blow to Chief Executive Officer Stephen Hester’s attempt to overhaul the Edinburgh-based lender after it took $73.1bn pounds from taxpayers in the largest bank bailout in history in 2008.
The size of the fine and the date of the settlement aren’t yet fixed and the final details are still to be agreed, the people cautioned.
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