RBS derivatives traders and managers, some still employed by the bank, regularly asked inputters to submit rates favorable to their trading positions, people with knowledge of the lender’s probe said last week. Even so, more than two years after the bank started its investigation, no senior managers have been fired, though RBS may still take disciplinary action against some employees, one of the people said.
In a Jan. 18 court filing, RBS detailed its disciplinary policy, saying suspension will normally be on full pay, doesn’t amount to disciplinary action in itself, and will be reviewed to ensure it is not “unnecessarily protracted.”
Libor is calculated by a daily poll carried out daily by Thomson Reuters Corp. on behalf of the British Bankers’ Association, a London-based lobby group, that asks firms to estimate how much it would cost to borrow from each other for different periods and in different currencies. The top and bottom quartiles of quotes are excluded, and those left are averaged and published for individual currencies before noon in London.
Barclays Plc, Britain’s second-biggest lender by assets, is the only bank to have settled with regulators over the rigging of interest rates. The London-based company paid a record 290 million pound ($469 million) fine in June for manipulating Libor. Chief Executive Officer Robert Diamond and Chairman Marcus Agius resigned in the aftermath.