Hester warns RBS will face huge LIBOR fine

Stephen Hester, chief executive of the Royal Bank of Scotland, has admitted his bank will face a significant fine over the rate-rigging scandal which has thrown Barclays into the spotlight in recent weeks.

The recent LIBOR scandal, which saw Barclays fined £290m by the Financial Services Authority and the US Commodities Futures Trading Association over deliberately fixing its interest rates, led to the sacking of four RBS traders on 1 July. The fine also prompted an investigation by the FSA into a number of investment banks, including RBS. "RBS is one of the banks tied up in LIBOR. We will have our day in that particular spotlight as well," Hester told the Guardian, who confirmed RBS was under investigation by the FSA. The scandal surrounding Barclays temporarily distracted attention...