The Royal Bank of Scotland (RBS) has been fined £5,620,300 by the Financial Conduct Authority (FCA) for incorrectly reporting transactions it made in wholesale markets, and in some instances, failing to report transactions at all.
Regulators should start thinking about alternatives to fines, such as punishing banks with higher capital requirements in order to help remedy problems, says Craig Spielmann, head of operational risk for the Americas at RBS in New York.
The finance industry needs to put a stop to its sequence of scandals and work to rebuild trust, according to David Wright, secretary general of the International Organization of Securities Commissions.
UK bank RBS has been fined a collective £391m for its role in the Libor scandal, with the UK FSA’s investigation finding over 200 “inappropriate” rate submissions.
Two executives at Royal Bank of Scotland are reportedly under pressure to step down as US and UK regulators are concerned about the culture of the investment banking division at the bank.