Royal Bank of Scotland hit with $50M fine in Conn.

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Associated Press

Posted on January 6, 2014 at 4:02 PM

Updated Monday, Jan 6 at 4:05 PM

HARTFORD, Conn. (AP) — The Royal Bank of Scotland has been fined $50 million in Connecticut as part of more than $600 million in penalties announced last year for manipulating interest rates.

The bank's subsidiary, RBS Securities Japan Limited, agreed to pay the fine last year as part of a plea agreement. It was approved by a federal judge Monday.

The subsidiary pleaded guilty last April to wire fraud and admitted its role in manipulating the Japanese Yen London interbank offered rate, or LIBOR. Banks use that rate to lend money to each other and it provides the basis for trillions of dollars in contracts.

U.S. and U.K. regulators fined RBS $612 million for rate-rigging.

RBS was one of several banks fined for manipulating LIBOR. Prosecutors say those responsible have left and others were disciplined.

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