RBS Securities Japan Ltd had entered its plea
last April 12, as part of its parent's $612 million settlement
to resolve criminal and civil probes by authorities in the
United States, the United Kingdom and Japan into rate
Libor is also known as the London Interbank Offered Rate. It is
a benchmark for rates on trillions of dollars of mortgages,
credit cards, student loans, derivatives contracts and other
In a December 31 joint court filing with the U.S. government,
RBS Securities Japan said that from at least 2006 to 2010, some
of its traders sought to move Libor in a direction that
benefited their trading positions. Authorities said this enabled
the traders to profit at the expense of counterparties.
The filing said probes revealed wrongful conduct related to
Libor submissions for Japanese yen and another currency that
involved about 20 RBS traders, including four at RBS Securities
Japan. That unit said it "accepts responsibility" for its
"Today's sentencing of RBS is an important reminder of the
significant consequences facing banks that deliberately
manipulate financial benchmark rates," Mythili Raman, acting
head of the U.S. Department of Justice's criminal division, said
in a statement.
The Justice Department said the $50 million fine and plea were
approved by U.S. District Judge Michael Shea in Hartford,
Connecticut. RBS has offices in Stamford, Connecticut.
More than a dozen banks and brokerage firms have been probed
worldwide over alleged Libor manipulation. Barclays Plc, ICAP
Plc and UBS AG have also reached settlements with U.S.
The case is U.S. v. RBS Securities Japan Ltd, U.S. District
Court, District of Connecticut, No. 13-cr-00073.
(Reporting by Jonathan Stempel in
New York; editing by Bernard Orr)
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