RBS bank says to pay 'significant penalties' over Libor

London, Feb 6 (AFP) Royal Bank of Scotland today said it expected to pay "significant penalties" and face other sanctions from British and US financial regulators over its role in the Libor rate-rigging scandal. Reports said RBS would settle by paying US and British authorities up to 500 million pounds, in an announcement expected today. "RBS confirms that it is in late-stage settlement discussions with these authorities," the Edinburgh-based bank said in a statement. "Although the settlements remain to be agreed, RBS expects they will include the payment of significant penalties as well as certain other sanctions." That would be more than Libor-related fines handed out to British bank Barclays last year but less than the amount slapped on Swiss lender UBS. Dow Jones Newswires quoted one source as saying that an RBS unit, possibly based in Asia, could also plead guilty to a crime in the United States. Some attempts to rig the Libor rate-setting process allegedly took place in Asia. Other reports said the head of the lender's investment banking arm will step down, adding that John Hourican is to give up 4.0 million pounds in past share awards. RBS shares rallied 1.76 percent to stand at 343.4 pence in morning trade on London's benchmark FTSE 100 index, which was up 0.52 per cent at 6,315.61 points. (AFP) NKP DDC 02061654 NNNN