World
Royal Bank of Scotland facing 500 million pound fine over Libor: Report

According to a report in the Wall Street Journal, US authorities were pushing for a settlement of allegations that would also result in an RBS division pleading guilty to criminal charges

 

London: Britain’s Royal Bank of Scotland (RBS) could face a 500-million pound ($786-million, 585-million-euro) fine from British and US authorities for its role in the Libor rate-rigging affair, reports PTI quoting media sources.

 

The Wall Street Journal, citing people briefed on negotiations, added that US authorities were pushing for a settlement of allegations that would result also in an RBS division pleading guilty to criminal charges.

 

The newspaper said that the deal could be completed within the next fortnight and added that RBS was resisting any guilty plea amid fears it would lose clients and spark costly litigation.

 

A spokesman for the state-rescued bank would not be drawn on the article, simply saying: "Discussions with various authorities in relation to Libor setting are ongoing.

 

"We continue to co-operate fully with their investigations," he added in a statement.

 

Investors meanwhile took flight at Tuesday's development.

 

RBS shares sank 5.98% to finish at 345.80 pence on London's FTSE 100 index of leading shares, which ended 0.71% higher at 6,339.19 points.

 

The Edinburgh-based lender is 82% owned by the British government after a vast bailout during the global financial crisis.

 

The Libor affair erupted in June 2012 when Barclays bank was fined 290 million pond by British and US regulators for attempted manipulation of Libor and Euribor interbank rates between 2005 and 2009.

User

IDBI Bank cuts lending, deposit rates by 0.25%

IDBI Bank has reduced the benchmark prime lending rate and fixed deposit rates on select maturities by 0.25%

 

New Delhi: Within hours of the Reserve Bank of India (RBI) reducing the key policy rates, IDBI Bank slashed its lending and deposit rate by 0.25%, reports PTI.

 

“The new base rate or minimum lending rate (at 10.25%) will be effective from 1st February,” the bank said in a release.

 

The base rate is the minimum lending rate below which banks cannot offer any loan to customers.

 

IDBI Bank was the first one to cut lending rates following the announcement of the RBI to reduce short-term lending rate by 0.25% and deciding to slash cash reserve bank (CRR) by same margin to inject Rs18,000 crore of liquidity into the system.

 

Mumbai-based IDBI Bank has reduced the benchmark prime lending rate (BPLR) and fixed deposit rates on select maturities by 0.25%.

 

“IDBI Bank has taken this proactive step keeping in view the policy measures announced by the RBI in its third quarter review of monetary policy today,” it said.

 

The reduction in interest rate is expected to positively impact loan growth both in retail and corporate segments.

 

Various other banks, including the market leader State Bank of India (SBI), said that they would take a call on reducing interest rates in coming days.

 

National Housing Bank (NHB) had earlier announced cut in lending rates by 0.25% benefiting the home loan borrowers.

 

Meanwhile, foreign lender the Royal Bank of Scotland (RBS) also reduced its base rate by 0.75% to 9%.

 

The base rate is the benchmark to which all loan rates are linked, RBS said in a statement.

 

“Today's move by the RBI to cut repo and CRR by 25 basis points is in sync with our expectations. In line with the potential deflationary environment, RBS has decided to cut its base lending rate,” it said.

User

Haryana blacklists SBI Life for delaying annuity payments

Haryana blacklisted SBI Life Insurance Company and cancelled the bid awarded to it for delaying the entire process of distribution of annuity to the land owners

 

Chandigarh: SBI Life Insurance Company has been ‘blacklisted’ by the Haryana government for allegedly delaying the process of distribution of annuity to land owners under the resettlement and rehabilitation (R&R) policy of the state government, reports PTI.

 

While giving this information in a release, an official spokesman of the state finance department said, “Haryana government has blacklisted SBI Life Insurance Company Limited and cancelled the bid awarded to it for delaying the entire process of distribution of annuity to the land owners under the state’s R&R policy.”

 

He further said stringent actions, including debarring SBI Life Insurance from doing any further business with the state or any of its department could also be taken as per the law.

 

The official spokesman said that an expression of interest (EOI) was issued in February 2011 inviting bids from insurance companies or Banks for purposes of providing services for disbursement of annuity to the land owners under R&R policy of the state government.

 

The bid-cum-tender document was submitted by SBI Life Insurance on 31 March 2011.

 

He said that after receipt of the bid documents, several rounds of negotiations and discussions were held with respect to various stipulations and conditions stated in the draft service level agreement (SLA) including the obligation of the noticee as service provider with respect to collection and validation of data of the beneficiaries.

 

The spokesman further said decisions regarding the contract were taken by the government on 25 July 2011 and 11 August 2011 for making payment of annuity under R&R policy by allocation of work amongst the selected insurance companies. A letter of intent (LoI) was issued to noticee on 6 September 2011.

 

The said LoI was also issued on specific and unambiguous stipulation that the LoI would be subject to execution of service level agreement (SLA).

 

This was expressly communicated to the noticee that the government reserved its right to withdraw the said LOI in the event of failure of noticee to execute the SLA, he added.

 

He said that the state government in performance of its obligation as expressed under the LOI duly advanced payment in favour of noticee towards 50% purchase consideration and allocated area of operation to noticee.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)