The FSA and US regulators have fined The Royal Bank of Scotland a total of £390m for manipulating Libor.
The fine breaks down as £87.5m by the FSA, £207m by the US Commodities and Futures Trading Commission, and £95m by the US Department of Justice.
Between January 2006 and November 2010 RBS’ misconduct included making Japanese yen and Swiss franc Libor submissions that took into account its derivatives trading positions; allowing derivatives traders to act as substitute submitters; and making Japanese yen, Swiss France and US dollar Libor submissions that took into the profit and loss of its money market trading books.
RBS derivatives traders were also found to have colluded with other Libor panel banks and interdealer broker firms to influence the Japanese yen Libor submissions made by other banks.
The FSA says at least 219 requests for inappropriate submissions were documented, in addition to an “unquantifiable number” of oral requests. At least 21 RBS employees including derivatives and money market traders and at least one manager were involved.
The bank told the FSA in March 2011 that its Libor-related systems and controls were adequate.
FSA director of enforcement and financial crime Tracey McDermott says: “During the course of the FSA’s work on Libor, RBS provided the FSA with an attestation that its LIBOR related systems and controls were adequate. This was not correct. The FSA takes it very seriously when firms tell us they have appropriate systems but do not.
“The extent and nature of the misconduct relating to Libor has cast a shadow on the reputation of this industry and we expect firms to take steps to ensure that this can never happen again. This is the third penalty we have imposed in relation to Libor related misconduct. The size and scale of our continuing investigations remains significant.”