“Royal Bank of Scotland Group Plc is set to pay about 400 million pounds ($627 million) in fines for manipulating interest rates, the second-largest penalty imposed in a global regulatory probe, two people with knowledge of the matter said.
An announcement will be made today, said the people, who requested anonymity because they weren’t authorized to speak publicly. An RBS unit will plead guilty to criminal charges as part of a deal with the U.S. Justice Department, a person familiar with the talks said. It’s the third fine to result from a global probe into whether lenders rigged the London interbank offered rate, or Libor. Investment banking chief John Houricanalso was expected to resign, the people said.
The penalty is the biggest blow to Chief Executive OfficerStephen Hester’s attempt to overhaul the Edinburgh-based bank after it took 45.5 billion pounds in a 2008 taxpayer bailout, the largest in history. The fine would exceed the 290 million pounds Barclays Plc paid in June, and be second only to the $1.5 billion UBS AG paid in December. Chancellor of the Exchequer George Osborne said this week that RBS should pay the U.S. fines by clawing back bonuses from its investment bankers.
‘Taxpayer Money’…”
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