Libor Fixing Scandal: Japan Orders RBS to Overhaul Compliance
By Lianna Brinded | April 12, 2013 8:10 PM EST
Japan's Financial Services Agency has ordered the Royal Bank of Scotland's Tokyo-based investment bank to overhaul its compliance procedures, after the bank pleaded guilty to criminal charges. A number of employees were found to have sought and colluded to manipulate interbank lending rates.
According to a statement on the regulator's website, the FSA ordered RBS Securities Japan Limited to improve its compliance functions, which includes "clarifying the responsibility of the management and staff regarding [rate manipulation] and take preventive measures against recurrence of [Libor rigging]."
The FSA has also forced the unit to submit a report to the regulator by May this year, and every three months thereafter, in order to prove it is planning and implementing a change to its compliance procedures.
In February this year, RBS agreed to pay £390m ($612m / €451m) to settle US and UK charges related to the manipulation of the benchmark lending rate known as Libor, as well as pleading guilty to a criminal charge of wire fraud from a Japanese subsidiary.
When RBS Securities Japan Limited pleaded guilty to one criminal charge of wire fraud, the bank entered what's called a deferred prosecution agreement under which it cooperates with the US Department of Justice, pay a $150m fine and have that charge and another antitrust charge deferred.
However, despite the "widespread misconduct," the CEO Stephen Hester remains as leader of the bank and will not be expected to pay back his 2010 bonus, even though thousands of other staff members will be asked to forfeit their own earnings to fund the Libor-rigging fine imposed RBS.
Later that month, Hester and Chairman Philip Hampton gave evidence to politicians that the bank was assessing the misconduct and had several plans in place to bolster its risk management and compliance functions.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Join the Conversation
- Revealed: Vladimir Putin Plotting To Invade Europe – Report
- IKEA Black Friday 2014 Ad Includes Discounts On Home Furnishings, Appliances, Kitchen Designs, Beds, Sofas, Mattresses And Toys
- Australian and Other Select Earth Locations Hold Proofs Life Once Existed On Mars – Report
- Samsung Galaxy S6 Will Shatter Records with 64-Bit Snapdragon, 21MP Camera and Bendable Design
- Lowe's Black Friday 2014 Deals Include Up To 40% Off On Select Major Appliances, Plus Free Shipping For Orders Of $19 Or More
- Bill Clinton At It Again, Caught By Camera In Jerusalem Peeking At Woman’s Breast
- Black Friday 2014 Sale: Best Buy,Target And Amazon Offer Huge Discounts On Tablets Like iPad Air 2, Shield Tablet, Surface Pro 3 And More