RBS involved in Libor manipulations
RBS Chief Exec, Stephen Hester is preparing the ground for bad news on Libor with a series of soft messages to the outside world. City insiders have been suggesting to John Mann that the RBS involvement in Libor manipulation may be noticeably worse than that of Barclays.
John Mann is asking George Osborne to confirm whether or not he has received any formal or informal briefings, including via his team of officials at the treasury on this issue. Specifically, Mann is asking when the FSA inquiry into RBS Libor fixing began.
He said "Its not credible that UKFI who represent the main shareholder i.e. the taxpayer, was not kept informed of the investigation and it's seriousness. Either George Osborne is failing to run the Treasury properly or he is failing to tell Parliament what he knows".
Mann's concerns have been very significantly heightened by City Minister, Mark Hoban's claim that he only learned of the scandal in recent times. Mann asked "Why was the City Minister kept in the dark and who else has been kept in the dark?"
Mann is suggesting that Osborne's position is compromised because he has based his fiscal projections on an anticipated windfall from the reprivatisation of RBS and is over reliant on this for a pre-election spending boost.
Mann commented "Osborne's ill-judged outburst against Ed Balls has led many to believe that he himself was under huge pressure because of miscalculations over the fiscal implications of the Libor scandal.
John Mann added "If Osborne denies receiving any information there needs to be a full Cabinet Secretary investigation into the running of the UK taxpayers investment in RBS; the failure to protect future share values and the liability of both Osborne and UKFI if losses accrue to the taxpayer due to a lack of due diligence".
UNI and its affiliates urge major culture change in the financial sector. Appropriate regulatory measures need to be put in place to protect the “whistle-blowers” which had been revealing unethical behaviour since 2007. Bank employees must be seen as vectors of change.
See also the previous article about Barclays.