Royal Bank
of Scotland has suspended another trader as part of its ongoing investigation
into the potential manipulation of Libor
guardian.co.uk,
Jill Treanor, Friday 26 October 2012
 |
| RBS suspends another trader. Photograph: Andy Rain/EPA |
Royal Bank of Scotland has suspended another trader as part of its ongoing investigation
into the potential manipulation of Libor.
The
bailed-out bank has already warned that it expects to be fined by regulators
for its role in attempting to fix the key benchmark interest rate which has
cost Barclays £290m in penalties.
RBS fired
four traders last year – including Tan Chi Min, a senior trader in Singapore who is now suing the bank for wrongful dismissal – and earlier this month suspended Jezri Mohideen as head of rates trading for Europe and Asia Pacific.
It has now
been reported that Ken Choy, a Singapore-based foreign exchange trader, has
also been suspended as the local authorities step up an investigation into the
local interest rate benchmarks. Choy was quoted in the Wall Street Journal as
saying he was on "compliance leave".
RBS, 81%
owned by the taxpayer, is expected to face fresh questions about Libor when it
reports its third quarter figures next week and repeated its statement that it
was continuing to co-operate with regulators.
The other
bailed-out bank, Lloyds Banking Group, is also co-operating with regulators
after receiving subpoenas from a number of jurisdictions, including the US.
"It is
currently not possible to predict the scope and ultimate outcome of the various
regulatory investigations or private lawsuits, including the timing and scale
of the potential impact of any investigations and private lawsuits on the
group," Lloyds said in its half year results in the summer. It will update
the market on its third quarter trading next week amid concerns it could also
be forced to make a new provision for payment protection insurance misselling
on top of the £4.3bn already set aside to cover potential claims.
Eric
Schneiderman, New York attorney-general and George Jepsen, the Connecticut
attorney-general, are among the two US bodies to request information from banks
lately. More than a dozen banks around the world are thought to be co-operating
with regulators in the UK, Europe, the US, Switzerland and in Asia.
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