Banks face $22bn in LIBOR penalties - Morgan Stanley

LIBOR rate-rigging penalties and damages to investors could reach $22bn for the 12 global banks involved, according to Morgan Stanley estimates.

Its analysts assume 11 more banks will be fined like Barclays, which had to pay a record £290m fine to UK and US regulators for breaching rules regarding LIBOR. Morgan Stanley warns taxpayer-owned bank RBS could face a legal bill of up to $1bn and fines of £150m, which if accurate could indicate a lower level of wrongdoing than Barclays, said Morgan Stanley, who expect RBS as a state controlled bank to settle early. The report said: "We see the LIBOR issue as particularly contentious for the UK banks as LIBOR rate is overseen by the British Bankers' Association (whose chairman has ste...