RBS braces itself for "significant" Libor penalties

RBS said this morning that it expected to pay "significant penalties" to settle regulatory probes into interest rate fixing.

The high-street bank, with is 82 per cent owned by the taxpayer, this morning confirmed that it was in “late-stage settlement discussions” with US and UK regulators.

No settlements have yet been agreed, although RBS said it expects the settlement will include other sanctions as well as penalties.

The fine, which is expected to weigh in at around £390m, is set to be revealed later on today.