RBS share price declines as bank suspends two more employees in forex probe
Shares in Royal Bank of Scotland (LON:RBS) have been trading lower today amid news that the group has suspended a further two employees on suspicion of currency market manipulation. “We can confirm that two members of staff have been suspended as part of the ongoing FX [foreign exchange] investigation at the bank,” RBS said in a statement today, without disclosing the identity of the employees.
The lender, which is 79 percent-owned by the UK taxpayer, launched an internal review into its forex activities after it was one of six banks fined a combined $4.3 billion (£2.8 billion) last month for failing to stop traders from trying to manipulate currency markets. Six senior staff members are under disciplinary processes, three of whom are on suspension. RBS’ latest move brings that total number to five.
According to The Times, the Financial Conduct Authority (FCA) is escalating its supervision of foreign exchange traders in the City after the discovery of further misconduct by the US Department of Justice. It said the latest cases relate to the rigging of emerging market currencies, which did not form part of the FCA’s internal investigation.
By 12:55 GMT, RBS’ share price had declined 0.97 percent to 400.00p. According to the Financial Times, the 25 analysts projecting 12 month price targets for the FTSE 100-listed lender, have a median target of 385.00p, with a high estimate of 530.00p and a low of 250.00p. As of 14 February 2015, the consensus forecast amongst 51 polled investment analysts covering RBS has it that investors should hold their position in the company.
As of 14:04 GMT, Wednesday, 25 February, Royal Bank of Scotland Group share price is 399.55p.