RBS Drops on Report U.S. Authorities Want Libor Guilty Plea

RBS

Royal Bank of Scotland fell the most in four months after the Wall Street Journal reported U.S. authorities are seeking a guilty plea to criminal charges as part of any settlement of allegations of interest-rate rigging.

Bloomberg reports that executives are resisting such a plea on concern it could increase RBS’s vulnerability to litigation and lead clients to curtail business, the newspaper reported, citing unidentified people with knowledge of the talks. The bank expects to pay about $786m in fines to U.K. and U.S. regulators in a settlement as soon as next week, two people with knowledge of the matter said earlier this month.

'Discussions with various authorities in relation to Libor-setting are ongoing', Michael Strachan, a spokesman for RBS, said. 'We continue to cooperate fully with their investigations'. He declined to comment further on the talks with the Justice Department.

RBS fell 5.1% to 349 pence as of 11:55 a.m. in London, the biggest drop since September  26th.

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RBS Drops on Report U.S. Authorities Want Libor Guilty Plea

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