RBS hit with fresh fine over foreign exchange market rigging scandal

RBS and its subsidiary NatWest Markets Plc said they acknowledge the announcement by the European Commission today that two settlements have been reached with it and the other financial institutions involved in the scandal.

Still more than 60 per cent state-owned RBS, together with NWM, were fined a total of €249,214,000 relating to the affair which took place in two groups of chatrooms, which the European Commission said had rigged the market between 2007 to 2013.

The Commission’s investigation, which began in September 2013, revealed that some individual foreign exchange traders, using online chatrooms, exchanged trading plans and occasionally co-ordinated their trading strategies.

RBS Group said the aggregate fine it has received is fully covered by existing provisions in NWM Plc.  

In one case, four banks formed the so-called “Banana Split” cartel - which comprised RBS, Barclays, Citigroup and JP Morgan.

These banks were fined €811m in all.

Another three banks in the “Essex Express” cartel - again involving RBS and Barclays, but this time along with MUFG - were fined €258m.

A sixth bank, UBS, was excused financial penalties for revealing the cartels’ existence.

Competition Commissioner Margrethe Vestager said the banks’ behaviour “undermined the integrity of the sector at the expense of the European economy and consumers”.