The Royal Bank of Scotland has been fined $612 million by regulators after an investigation found 21 bank employees tried to rig global benchmark interest rates over a period of four years.
The settlement with the part-nationalized U.K. bank follows similar deals last year with Swiss bank UBS and Barclays, which paid out $1.5 billion and $450 million respectively.
RBS pleaded guilty to wire fraud in Japan, admitted attempting to fix rates to boost trading profits and acknowledged serious failing in its internal controls .
RBS will pay £87.5 million to the U.K. Financial Services Authority, $325 million to the U.S. Commodity Futures Trading Commission and $150 million to the U.S. Department of Justice.
Regulators and law enforcement officials around the world have been investigating the role of at least 14 banks in setting the London Interbank Offered Rate, or Libor, and related interest rates that are used to price financial products worth trillions of dollars.
Among the banks facing scrutiny are Citigroup, Deutsche Bank, JP Morgan and HSBC.
Authorities in the U.K. and U.S. said there would be no let up in the investigation.
"These are extraordinary results, and our investigation is far from finished." said U.S. assistant attorney general Lanny Breuer. "Our message is clear: no financial institution is above the law."
All 21 RBS employees have left the bank or been disciplined, and two managers have been dismissed. The bank's head of investment banking, John Hourican, will also leave.
While not involved in the Libor affair, Hourican was leaving "in recognition of the management issues identified in relation to this settlement and the impact on the group's reputation," RBS said.