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RBS Chief Warns Of New Scandal As Big As Libor

Friday 18th July 2014

The head of the Royal Bank of Scotland has told LBC that claims of foreign exchange rate fixing at major banks have the hallmarks of being as big as the Libor or PPI scandals.

There are allegations that dealers at major banks colluded and manipulated key reference rates in the $5.3trillion-a-day market.

RBS Chief Executive Ross McEwan says it could be very costly for the bank. On whether it will become a major scandal, he said: "Unfortunately, it has the hallmarks.

"We're still doing a lot of investigation. We're going through millions and millions of emails, chatrooms, conversations to see what actually went wrong, if anything, in this area.

"Unfortunately, I have the feeling that this is a Libor case again.

"The difference this time is that we haven't sat back and denied it. We've gone into it and done the investigation hand-in-hand with the authorities.

"And again, I'd like to see it cleaned up as quickly as we can. We need a better bank."

In 2008, the RBS was the most controversial bank in the country, bailed out by the government, to the tune of 46billion and embroiled in controversy over bankers bonuses.

WATCH: Ross McEwan on LBC - In Full