Royal Bank of Scotland Drawn into Libor Scandal as Banks Learn Scale of Review

HJ: As should be obvious to anyone following this scandal by now, every major bank is implicated and those that have not yet will be.  This scandal is finally shining the light on the truth that there is a major conspiracy by top officials to manipulate, for their sole benefit, the interest rates which determine the cost of money for the world. – Truth

The man charged by the Government with conducting an independent review into the Libor rigging scandal, which has already cost Barclays £290m in fines, will on Monday outline the scale of the inquiry.

By , and Harry Wilson

6:45AM BST 30 Jul 2012

The Telegraph

Martin Wheatley, head of financial conduct at the Financial Services Authority, is expected to announce the “terms of reference” of the review, designed to clamp down on manipulation of the interbank lending rate.

The Government has been keen to show its commitment to respond swiftly to the scandal, and Mr Wheatley will report back by the end of the summer. It was reported on Sunday night that RBS is expected to follow Barclays and be hit with potentially large fines over Libor rigging.

Stephen Hester, the bank’s chief executive, confirmed: “RBS is one of the banks tied up in Libor. We’ll have our day in that particular spotlight as well.”

He added: “Those wrongdoings taint a whole industry beyond the handful of people and that makes it a huge problem.”

Meanwhile, a Barclays shareholder expressed frustration at the stream of negative news emanating from the bank following the disclosure of a fresh FSA investigation into the fees paid out by the bank to help secure funds from Middle East investors in 2008. “To be honest we want to see Barclays get out of the news,” said Richard Buxton, fund manager at Schroders.

1 comment on this postSubmit yours
  1. the Libor scandal is flliueng public anger toward the banks. “The revelations broadly are another episode that is damaging to people’s confidence in the financial services industry, and that’s a shame,” he said in an interview with Reuters last week.

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