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RBS could face larger Libor fine than Barclays

John Mann

John Mann, a Labour MP on the U.K.’s Treasury Select Committee, recently said that the Royal Bank of Scotland’s involvement in the Libor scandal may be “noticeably worse” than that of Barclays.

“That’s what I’m hearing,” Mann said, the Huffington Post reports. “The suggestions being made are that RBS was more chaotic than Barclays, the whole way they were operating and, therefore, whatever was being done, RBS was doing it more crudely.”

Barclays was forced to pay out $453 million in a June settlement with U.K. and U.S. authorities regarding the bank’s role in manipulation of the London interbank offered rate—commonly referred to as Libor.

More than 12 banks across the world are under investigation by regulators in Asia, Europe and the U.S. for suspected manipulation of Libor, a key benchmark rate used to price trillions of dollars of financial products.

RBS, which is 82 percent-owned by the U.K. government, is working towards a settlement in the fourth quarter. Mann called on British finance minister George Osborne to confirm whether he had been briefed on the extent of RBS’s involvement in the recent scandal.

“It’s not credible that [UK Financial Investments], who represents the main shareholder i.e., the taxpayer, was not kept informed of the investigation and its seriousness,” Mann said, the Guardian reports. “Either George Osborne is failing to run the Treasury properly or he is failing to tell parliament what he knows.”

The bank confirmed earlier this month that it had dismissed employees involved in the scandal but gave no indication as to whether it would soon come to a settlement with regulators. Additionally, the bank said that it was cooperating with international regulators in the investigation.

Many institutions are attempting to evaluate the depth of their involvement as compared to other institutions and whether the rate-rigging was confined to a small number of traders, according to the Guardian.

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