The Royal Bank of Scotland has become the latest bank to get hit with a fine for their role in an interest rate rigging scandal. They’ll have to pay £150 million pounds — that’s about $233 million.
The Libor rigging scandal, as its called, lead to the Barclays CEO stepping down yesterday. And this sort of rate fixing isn’t just in the United Kingdom — one of Royal Bank of Scotland’s subsidiaries, NatWest, was named in a bid-rigging lawsuit, along with popular American banks such as Morgan Stanley, JP Morgan, and Bank of America.
William Cohan used to work with JP Morgan, and is now a financial journalist and author. His most recent book is “Money and Power: How Goldman Sachs Came to Rule the World.” And he says this sort of rate fixing undermines the public's faith in capitalism.