RBS boss says FX could be more costly than Libor

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Royal Bank of Scotland Chief Executive Officer Ross McEwan said the foreign-exchange market scandal could be more expensive to the banking industry than Libor or improperly sold loan insurance.

'Unfortunately it has the hallmarks', he said in a radio interview with LBC today. 'I have the feeling that it is a sort of a Libor case again',

Bloomberg News reports that U.S. and U.K. authorities are investigating potential manipulation in the $5.3 trillion-a-day global currency market by banks around the world. It comes amid penalties for misconduct ranging from helping clients to evade taxes to money laundering. At least nine firms have been fined more than $6bn for manipulating benchmark interest rates such as the London interbank offered rate.

Britain’s biggest government-owned bank, bailed out by taxpayers amid the global banking crisis, is checking 'millions and millions of e-mails, chat-rooms, conversations' to see 'what actually went wrong, if anything in this area', in relation to foreign-exchange markets, McEwan said.

To access the complete Bloomberg News article hit the link below:

RBS CEO Says Currency-Rigging Scandal Could Top Libor

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