HSBC Holdings PLC HSBA

DJ RBS: No Certainty On Timing, Fine On Interest-Rate Probe

By Marietta Cauchi

LONDON --The Royal Bank of Scotland PLC Group (RBS) Friday said the bank is cooperating fully with the authorities in connection with a long-running probe by U.S. and U.K. regulators into allegation that traders at the bank sought to manipulate interbank lending rates.

RBS was responding to an article in The Times that said that RBS was set to be fined about GBP150 million.

"The process is not as far advanced as the article suggests, and there can be no certainty as to the timing or amount of any fine or settlement at this point. RBS will continue to cooperate with the authorities," the bank said.

RBS is one of several global banks being investigated for interest-rate manipulation, and its statement comes just two days after Barclays PLC (BCS) admitted that its traders attempted to manipulate the London Interbank Offered Rate, or Libor, and agreed to pay fines totaling $454 million.

Other banks being probed include Citigroup Inc. (C), Deutsche Bank AG (DB), HSBC and J.P.Morgan Chase & Co. (JPM).

At 0915 GMT, RBS shares were up 1.4% at 209 pence after declining more than 11% Thursday.

Write to Marietta Cauchi at marietta.cauchi@dowjones.com

(END) Dow Jones Newswires

June 29, 2012 05:17 ET (09:17 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.