Sunday, February 10, 2013

The Wrong Stuff

http://www.economist.com/blogs/schumpeter/2013/02/royal-bank-scotland-and-libor

This article talks about The Royal Bank of Scotland and how they were rigging their interest rates. Take traders at the Royal Bank of Scotland (RBS) were leaving trails of evidence in e-mails and audio recordings detailing how they set about trying to manipulate LIBOR. The RBS agreed to pay fines of $475m to American regulators and another £87.5m ($137m) to Britain’s Financial Services Authority. The scandal has hardened the views of regulators and politicians. The inadequate risk controls at RBS will reinforce a perception that some banks have become not merely too big to fail, but too complex to manage. 

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