CFTC CHAIRMAN GARY GENSLER’S STATEMENT ON RBS SETTLEMENT

(The following is a reformatted version of a press release
issued by the Commodity Futures Trading Commission and received
via e-mail. The release was confirmed by the sender.) 
Statement of Chairman Gary Gensler on RBS Settlement 
Feb. 6, 2013 
Washington, DC - Today, Chairman Gary Gensler made the following
statement: 
“Today’s Order against RBS demonstrates yet another clear case
of a bank falsely reporting and attempting to manipulate or
successfully manipulating benchmark rates to increase trading
profits.  Such false reporting of benchmark rates undermines the
integrity of markets and shakes the public’s trust in our
financial system. 
“Once again we have a blatant example of what bad actors can do
when a benchmark rate’s underlying market becomes virtually
nonexistent. 
“I believe that for the public to have confidence in benchmark
rates, which are at the foundation our economy, they must
reference observable transactions.  It’s through real
transactions between arm’s length buyers and sellers coming
together in a marketplace that prices are discovered and set.
Benchmarks separated from real transactions leaves them
vulnerable to misconduct. 
“I want to thank the CFTC’s Division of Enforcement for their
dedication and hard work on this case.” 
(sgp) NY 
#<278855.14078.3.4.0.0.76>#
 
 
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