Britain's Royal Bank of Scotland Group plc (RBS.L,RBS) said Wednesday that it reached a settlement with the Financial Services Authority or FSA in the United Kingdom, the United States Commodity Futures Trading Commission or CFTC and the United States Department of Justice or DOJ, in relation to investigations into submissions, communications and procedures around the setting of the London Interbank Offered Rate or "LIBOR".
RBS has agreed to pay penalties of 87.5 million pounds, $325 million and $150 million to the FSA, CFTC and DOJ respectively, to resolve the investigations.
Under the agreement with the DOJ, The Royal Bank of Scotland has entered into a Deferred Prosecution Agreement in relation to one count of wire fraud relating to Swiss Franc LIBOR and one count for an antitrust violation relating to Yen LIBOR.
RBS Securities Japan Limited has also agreed to enter a plea of guilty to one count of wire fraud relating to Yen LIBOR.
The investigations uncovered wrongdoing on the part of 21 employees, predominantly in relation to the setting of the bank's Yen and Swiss Franc LIBOR submissions.
The findings also highlighted serious failures in the controls and risk management systems RBS had in place. However, none of the regulators in question concluded that RBS, as a firm, had engaged in any deliberate misconduct.
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