Business Secretary Vince Cable has called on Royal Bank of Scotland to cooperate with Canadian authorities investigating potential Libor rigging at the bank after it emerged the state-owned institution has been resisting efforts to force it to publish confidential documents for over a year.
Yesterday, the Telegraph reported that despite a senior Canadian judge ordering the bank to hand documents which could contain evidence of wrongdoing over to the Canadian Competition Bureau, it has failed to do so.
Speaking on the BBC World this Weekend yesterday, Cable said: “If there is an official legal enquiry in Canada and RBS is a party to it then obviously it must cooperate. I would have thought that was a no brainer.”
The court order was issued after a whistle blower revealed how a group of international bankers based in London had manipulated the Yen Libor rate which sets the rate at which banks borrow from each other in that currency.
RBS is 83 per cent owned by the taxpayer.
Last month, Barclays was fined £290m by the FSA and US authorities for rigging the Libor rate. Chancellor George Osborne has confirmed that RBS, HSBC, UBS and Citigroup are all also under investigation for attempting to rig the lending rate.