Royal Bank of Scotland (RBS) has been fined 390 million pounds by UK and US authorities for its part in the Libor rate-fixing scandal.
The UK's Financial Services Authority issued a fine of 87.5 million pounds, while about 300 million pounds will be paid to US regulators and the US Department of Justice.
The fines are 100 million pounds greater than those issued to banking rival Barclays last year for similar offences.
RBS Chairman Sir Philip Hampton said it was a sad day for the bank.
Chancellor George Osborne called the behaviour of traders totally unacceptable and said the bank, rather than taxpayers, would be paying the fines.
RBS is still 81 per cent owned by the taxpayer, four years on from a massive government bailout.
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