RBS

Stephen Hester, chief executive of the Royal Bank of Scotland, has admitted his bank will face a significant fine over the rate-rigging scandal which has thrown Barclays into the spotlight in recent weeks.

The European Commission has cracked down on the fixing of interest rates in the latest twist to the LIBOR scandal, which has dominated headlines in recent weeks.

Leading fund managers including Richard Buxton at Schroders have been increasing their exposure to major UK banks following the LIBOR scandal which has rocked the sector.

GOSLING'S GROUSE

Sanlam's Kokkie Kooyman has been capitalising on the plunge in bank shares caused by the LIBOR scandal, buying into Lloyds, Royal Bank of Scotland and Barclays.

The Royal Bank of Scotland (RBS) is fighting against a court order which requires it to co-operate with an international criminal investigation into rate-fixing.

The reputation of the UK banking sector hit a new low last week after the FSA hit Barclays with its largest ever fine of £59.5m for breaching LIBOR regulations.

Stephen Hester, chief executive of Royal Bank of Scotland, has given up his £2.4m bonus for 2012 following the computer meltdown at the bailed out bank.

Barclays record FSA penalty for LIBOR manipulation will be superseded by other banks' fines as the investigation deepens, according to Schroders' Richard Buxton.

Barclays, HSBC, Lloyds and RBS have agreed settlements with the FSA after the regulator found "serious failings" in their sales of interest rate hedging products.