RBS could settle Libor investigations within months RBS has already dismissed and suspended several staff in relation to Libor-rigging and is facing a lawsuit in Singapore from a former trader who claims interest rate manipulation was rife at the bank. As well as Libor-rigging, RBS is also among the major banks to be taking part in a Financial Services Authority-led redress programme for victims of swap mis-selling. RBS put aside £50m as an initial estimate of the cost of swap mis-selling in its first-half figures, and while the bank did not add to this fund on Friday, Mr Hester said it was possible the lender may have to make a "significantly bigger provision" once the results of a pilot compensation scheme are revealed later this month. In total, Britain's high street banks have set aside about £630m against swap mis-selling, a figure that is dwarfed by the just over £11bn currently expected to be paid out in PPI compensation. An increase in swap costs would be a blow to RBS as it spends millions upgrading its IT systems in the wake of this summer's computer "glitch," which left millions of the bank's customers without access to their money for more than a week. Most recently, RBS was hit by the withdrawal of Santander UK from a deal to buy 316 branches it is being forced to sell as a result of an European Commission state-aid ruling. Mr Hester insisted there were no plans to ask the EC to reverse its decision and that RBS was looking to relaunch the sale of the branches.