RBS 'set to agree £350m payment for Libor scandal'

Taxpayer-backed Royal Bank of Scotland is close to agreeing a £350m settlement with US and UK regulators over the Libor-fixing scandal, according to reports. This dwarfs the £290m penalty for Barclays in June. The furore cost then-chief executive Bob Diamond his job.

The latest blow for the industry's battered reputation was HSBC's $1.9bn (£1.2bn) fine for unwittingly laundering cash for Mexican drug cartels. Swiss bank UBS's Japanese arm is also said to be facing a $1.6bn fine this week for rigging interest rates in Tokyo. RBS declined to comment.