Former RBS chairman: Trader sackings 'correct response'

It has emerged that the Royal Bank of Scotland sacked four its traders at the end of last year over their alleged roles in trying to manipulate an inter-bank lending rate.

It comes after Barclays was fined £290m for trying to rig the rate, known as Libor.

Former RBS chairman Sir George Matthewson said the sackings are the ''correct response'' but also raised many questions.