The Royal Bank of Scotland Group has confirmed it is in late-stage settlement discussions with the FSA, the United States Commodity Futures Trading Commission and the United States Department of Justice over Libor rigging claims.

The expectation is that the UK banking group will face fines totalling £500 million.

It is also believed that John Hourican, the boss of the investment bank, will step down if found to be accountable for its part in Libor rigging.