RBS in trial over claims board knew of Libor rigging

A trial alleging that Royal Bank of Scotland’s Libor-related problems were known about at the highest level kicks off at the High Court on Thursday.

The case, brought by Manchester-based developer Property Alliance Group (PAG), claims some of RBS’ board were aware in 2007 of “serious problems” with Libor — which cost the bank £390 million in fines.

PAG has submitted documents which it claims show top RBS managers knew the Libor market was “broken” while it was still selling Libor-related products.

RBS rejects all the allegations and said it will “continue vigorously to defend this claim”. It previously said the documents, which PAG claims show RBS’ bosses knew about the Libor problems, had already been produced in the course of various investigations.

RBS previously reached a settlement with regulators in 2013 over claims of wrongdoing related to the manipulation of Swiss franc and Japanese yen Libor only. There have been no previous findings involving sterling Libor but part of the PAG alleges there was also sterling Libor-related misconduct.