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Continued: Royal Bank of Scotland pays $612 million over rate rigging

  • Article by: BEN PROTESS and MARK SCOTT , New York Times
  • Last update: February 6, 2013 - 11:03 PM

Royal Bank of Scotland, based in Edinburgh, had aimed to avert the guilty plea for its Japanese subsidiary, people involved in the case said. But the Justice Department’s criminal division declined to back down, and the bank had little leverage to push back. It decided not to formally appeal its case to Attorney General Eric Holder, another person said.

With fines coming from multiple authorities, the $612 million case amounted to the second-largest penalty levied in the multiyear investigation into rate manipulation. “The settlement with RBS is much more than a slap on the wrist,” argued Bart Chilton, a member of the trading commission who is critical of soft fines on big banks.

The settlement represents the latest setback for Royal Bank of Scotland, which has struggled to shake the legacy of the 2008 financial crisis. The British firm, which is majority-owned by the government after a bailout, already has put aside $2.7 billion to compensate customers who were inappropriately sold loan insurance in recent years.

 

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  • Londoners walked past a branch of the Royal Bank of Scotland. U.S. and British authorities fined RBS more than $610 million Wednesday for its role in the manipulation of LIBOR, a key global interest rate.

  • A subsidiary of England’s Royal Bank of Scotland pleaded guilty to a felony charge Wednesday.

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