RBS warns it faces 'significant penalties' over LIBOR

RBS has confirmed it faces not only a monetary fine but also other unspecified sanctions in relation to the LIBOR fixing scandal.

The bank, which is 82% owned by the UK government, said it is in talks with the FSA, the Commodity Futures Trading Commission and the United States Department of Justice, to agree a sum following investigations into the bank's "submissions, communications and procedures around the setting of the LIBOR". The figure is estimated to be around £500m, and although RBS has yet to confirm this, it warned shareholders today that the fine would be substantial. It also revealed there could be other punishments dished out as a result of the scandal. It said in a statement: "Although the settl...