RBS admits neglect, trader drops lawsuit

RBS branch sign

Royal Bank of Scotland has neglected its technology for decades, the state-backed bank's boss admitted on Tuesday after a system crash left more than 1 million customers unable to withdraw cash or pay for goods.

Reuters reports that the problem for three hours on Monday, one of the busiest online shopping days of the year, raised questions about the resilience of RBS's technology.

'For decades, RBS failed to invest properly in its systems', Ross McEwan, who became CEO in October, said.

'Last night's systems failure was unacceptable ... I'm sorry for the inconvenience we caused our customers', he said, adding he would outline plans in the New Year to improve the bank and increase investment.

The news agency also reports that a former trader for Royal Bank of Scotland who was fired for allegedly trying to manipulate the London interbank offered rate (Libor) has dropped a wrongful dismissal case against the firm.

Tan Chi Min was sacked from his Singapore-based role as head of delta trading for the bank's Global Banking and Markets division in November 2011.

RBS admits decades of IT neglect after systems crash

Ex-RBS trader fired over Libor drops wrongful dismissal case

image: © Elliot Brown

Register for Financial Markets News Alerts