The Royal Bank of Scotland is concerned it could receive a “double hit” of separate fines for its alleged involvement in the Libor-fixing controversy, one from the Financial Services Authority and one from the US regulators on separate days.
Executives at the bank are understood to be preparing for “several days in the sun” of unwelcome publicity. Barclays was fined £290m on one day in late June by both the British and US watchdogs.
It is thought the settlement could come as early as next month. The bank’s chief executive, Stephen Hester, has said publicly he would be disappointed if the bank had not agreed a Libor settlement by the time of RBS’s full-year results in late February.
Although the Financial Services Authority (FSA) is still working with its US counterparts – the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) – towards a global settlement, sources indicated to The Sunday Telegraph that a piece-by-piece settlement appears increasingly likely.
It is understood that regulators within the FSA felt undermined by the Barclays settlement, which critics said showed the British watchdog to be considerably weaker than its US counterparts.