RBS has been fined a total of £390 million by the US Commodity Futures Trading Commission, the US Department of Justice and the UK Financial Services Authority.
The FSA in its release said that the bank’s breaches were widespread and had ‘…encompassed a number of issues, involved a number of employees and occurred over a number of years’.
It went on to say that at least 219 documented requests for inappropriate submissions had been made together with ‘…an unquantifiable number of oral requests’.
But is anyone going to prison? 21 people, including derivatives and money market traders and at least one manager were involved in this scandal.
And it was found that this rate rigging continued long after traders found out that LIBOR rigging was being investigated.
As Bart Chilton, a CTFC commissioner quoted in the Telegraph said, “They acted as if they were masters of the universe and the rules of fair play just did not apply”.
Tracey McDermott, director of enforcement and financial crime, said:
“The integrity of benchmark reference rates such as LIBOR is of fundamental importance to both UK and international financial markets. The findings set out in our notice today demonstrate a failure by RBS to take that wider context into account.
“The failures at RBS were all the more serious because of the attempts not only to influence the submissions of RBS but also of other panel banks and the use of interdealer brokers to do this.”
With the PPI and interest rate swap mis-selling sagas on top of this you have to ask yourself where does fraud begin where the large banks are concerned? Or is it just an ATM for those in the know unless you get caught out?
We also know that bankers are generally well ahead of the curve in ways of making money out of money. So one wonders what the masters of the universe are using to line their pockets today and whether we will ever find out all of their little tricks.
Image by WolfgangSladkowski [CC-BY-3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons
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