LONDON, Jan 29: Britain’s Royal Bank of Scotland could face a £500 million fine from British and the US authorities for its role in the Libor rate-rigging affair, media reported on Tuesday.

The Wall Street Journal, citing people briefed on negotiations, added that the US authorities were pushing for a settlement of allegations that would result also in an RBS division pleading guilty to criminal charges.

The newspaper said that the deal could be completed within the next fortnight and added that RBS was resisting any guilty plea amid fears it would lose clients and spark costly litigation.

A spokesman for the state-rescued bank would not be drawn on the article, simply saying: “Discussions with various authorities in relation to Libor setting are ongoing.

“We continue to co-operate fully with their investigations,” he added in a statement.

The Edinburgh-based lender is 82 per cent owned by the British government after a vast bailout at the height of the global financial crisis. Investors, meanwhile, took flight at Tuesday’s development.—AFP