RBS will face Libor censure, Hester admits

30 July 2012

The Royal Bank of Scotland (RBS) will face censure over its role in the Libor manipulation scandal, its chief executive has admitted.

During an interview with the Guardian, Stephen Hester said he expects the financier to undergo an investigation into its part in the issue of rigging the key interest rate in the near future.

Analysis from regulators on both sides of the Atlantic is ongoing as the bodies attempt to ascertain which lenders colluded to falsely set the figure, which is used to set the rate of interest in dealing between banks.

Several major companies are under investigation and Barclays has already been hit with a fine of around $450 million for its participation.

And Mr Hester has indicated his firm is expecting action in the coming months.

"RBS is one of the banks tied up in Libor. We'll have our day in that particular spotlight as well," he noted.

By Asim Shah

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