RBS 'casino bank' fined £5.6m over misreporting
Double blow for bank after front-runner for Stephen Hester's job rules himself out
The City regulator bared its teeth against Royal Bank of Scotland again yesterday with a £5.6m fine for failing to report properly more than a third of its investment banking deals over five and a half years.
On what was another bad day for the state-owned bank, regulators issued the sanction just hours after one of the most highly regarded front-runners to replace the outgoing chief executive Stephen Hester, Mark McCombe, ruled himself out of the job.
Widespread misreporting of trades took place under the regimes of both the disgraced Fred Goodwin and Mr Hester. It even continued after the Financial Services Authority contacted the bank to complain in 2010.
A staggering 44.8 million transactions were not properly reported to the regulator, and 804,000 were not reported at all.
The FCA, like its predecessor the FSA, relies on accurate reporting of deals by investment banks so that it can pursue possible cases of insider trading or market abuse.
The regulator said much of the failure to report had resulted from RBS's disastrous and hugely expensive take–over of the Dutch investment bank ABN Amro in October 2007 under Mr Goodwin, which eventually led to the £45bn taxpayer bailout of RBS in 2008.
Tracey McDermott, the FCA's director of enforcement and financial crime, said: "Effective market surveillance depends on accurate and timely reporting of transactions. We have set out clear guidance on transaction reporting, backed up by extensive market monitoring, and we expect firms to get it right. "
Yesterday's fine is the 11th handed out by the FCA since it was created on 1 April, meaning a total of £23.9m in penalties has been imposed on individuals and financial institutions. It is also the latest in a stream of fines on RBS, including the £87.5m sanction earlier this year for its role in the Libor fixing scandal and £2.8m for the way it handled complaints over payment protection insurance.
Mr McCombe emailed colleagues at the fund management giant BlackRock yesterday morning, telling them that he would not be leaving, after he was named as the leading candidate for the RBS job.
The former Barclays executive David Roberts and National Australia Bank's Cameron Clyne are now the only serious external candidates. The internal frontrunner remains RBS's head of retail banking, Ross McEwan, followed by its corporate bank head, Chris Sullivan, ahead of Nathan Bostock, who is due to become finance director.
- 1 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Video: Boxer Vido Loncar brutally assaults referee following defeat
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...