Former RBS employee claims anyone could change interbank rate in Singapore court documents
As the Royal Bank of Scotland gets dragged into the Libor scandal thanks to court documents in Singapore, shares have dropped 3%, making it one of the biggest fallers on the FTSE 100.
However, the Government-controlled bank need not be too worried, because shares in Barclays, which was the first to be hit by regulators, are already back at pre-Libor scandal levels.
Just to remind everyone, and ex-Royal Bank of Scotland employee has claimed that anyone at the bank could change the lending rate whenever they chose.
Shares are down 7.1p at 228.5p after Tan Chi Min, who is suing RBS for wrongful dismissal, claimed that in 2008 a trader for the bank, Will Hall, changed the Libor submission himself even though he was part of the Japanese yen swap desk in London.
More worrying is the allegations he has made that the manipulation was covered up, claiming that minutes of his disciplinary hearing were inaccurate.
Barclays, the first bank to be fined in the Libor scandal, saw its own share price plummet 22.5% from 196p before its £290m fine and its lowest point, 150p, when Bob Diamond resigned.
However shares at Barclays are now back at the pre-Libor scandal levels trading today down 2.3p at 191.9p.