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RBS Chief Stephen Hester Expects Fine For Libor Scandal Role

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The Royal Bank of Scotland expect to be next in line to be censured by the Financial Services Authority over their role in the Libor scandal, its chief executive has said.

Stephen Hester, in an interview with The Guardian, said "RBS is one of the banks tied-up in Libor.

"We'll have our day in that particular spotlight as well."

Hester said the state-backed lender was in the process of being investigated by the Financial Services Authority over its role in attempting to manipulate the benchmark borrowing rate.

stephen hester

Stephen Hester said RBS, which was bailed out in 2008, would have their day in the Libor "spotlight"

The CEO, who will not take a bonus for 2012 after RBS experienced an IT outrage earlier this year affecting millions of customers, added "most of it is going to be around the wrongdoings of a handful of people at a number of banks.

"Those wrongdoings taint the whole industry beyond the handful of people and that makes it a huge problem."

He did not comment on the size of any financial penalty the bank expects to face.

It comes after Barclays was last month fined £290 million by UK and US regulators and saw a number of executives, including boss Bob Diamond, resign over the controversy.

bob diamond

Bob Diamond was forced to step down following the Libor scandal

Hester is expected to highlight the reputational challenge facing the City and signal a programme within the RBS to address corporate culture when next week's interim RBS results are announced on Friday.

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