RBS close to settlement over Libor fixing charges with US, UK authorities

Royal Bank of Scotland Group is close to a £500-million settlement with US and British authorities over claims that a number of its employees submitted false Libor rates, The Wall Street Journal reported citing unnamed people briefed on the negotiations.

The settlement would see the British bank plead guilty to criminal charges and additionally paying a penalty. However, according to the report, RBS executives were resisting any guilty plea.

It said the deal was expected to close within the next two weeks.

RBS would be the third bank to settle allegations over submitting false Libor rates following Barclays Plc and UBS AG.

Barclays was fined $453 million (£288.4 million) in June for manipulation of Libor benchmark interest rates, while UBS paid about $1.5 billion in December.

RBS spokesman Michael Strachan told the WSJ that discussions with various authorities in relation to Libor setting were ongoing and the lender continued to fully cooperate in the investigations.