It is one of the great scandals of our time and one that will seemingly be investigated long into the future. The Royal Bank of Scotland FX trading scandal has aggravated the public and drawn in plenty of input from major political figures. Matters have been made worse by the fact that those who own RBS shares are showing signs of nerves, as some are choosing to take their money away from the bank as they feel that the situation will only worsen. As the RBS FX trading scandal worsens, are RBS feeling the heat?
After seemingly fading away amidst the original investigation, the news that two further employees have been suspended has seen RBS once again returned to the headlines. The two workers in question have their identities shrouded in mystery as RBS have refused to declare their names to the public by issuing a statement saying, “we can confirm that two members of staff have been suspended as part of the on-going FX investigation at the bank”.
What has people most concerned and those who own RBS shares hovering over the sell button is that RBS is a government owned bank. Such banks are supposed to draw a hard line with fraudulent activities and run stricter operations than most banks. However, the FX trading scandal has blown this thought process away. RBS has launched a major internal review into its forex operations after it was fined over £2.5 billion for failing to stop forex trade riggers in their caps. The big loss and the surrounding controversy have caused concern surrounding the performance of RBS as a bank.
Ross McEwan has said “to say I am angry would be an understatement. We had people working at this bank who did not know the difference between right and wrong”. But these words don’t mean the problem has been routed out, as there are possibly fifty more current and former traders being looked at regarding FX trading irregularities. If you have RBS shares in your portfolio don’t be quick to that the storm has passed.
This isn’t the first major controversy that has come RBS’s way either. They were also wrapped across the knuckles for sharing confidential information about client orders in order to boost their bottom line. The problem is they got caught and suffered two hefty fines in the process, £217 million in the UK and $290 million in the US. RBS shares dipped as a result and it seems as soon as they picked themselves up the FX trading controversy knocked them back down again.
Even after the recession banks are still seemingly rife with characters that are less than honest. Banks like RBS should be stopping these figures in their tracks but they are struggling to do so and it is the price of RBS shares that seem to be paying the price. Do you own RBS shares? Then brace yourself, as the results of the FX trading scandal investigation may turn up the heat on the company to white hot.
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Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.