Royal Bank of Scotland faces huge fine

The recent computer meltdown at the RBS prevented around 13m customers from accessing their accounts for up to a month, but the problem appeared to have been distracted by the fine on Barclays that came to £290m.

Saying the Libor scandal was bad for the whole banking industry, Hester added, “RBS is one of the banks tied up in Libor. We’ll have our day in that particular spotlight as well.”

“Even though when all the Libor [fines] are out most of it is going to be around the wrongdoings of a handful of people at a number of banks. Those wrongdoings taint a whole industry beyond the handful of people and that makes it a huge problem,” he said.

Though he refused to show sympathy for Bob Diamond, the former boss of Barclays who resigned during the Libor scandal investigation.

Hester has up to 18 months left of his “clean up” operation of the UK bank that made a record of £24bn losses in 2008 while many banking sources predict his leave from the RBS.

BGH/SSM/HE

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