The Royal Bank of Scotland has settled with the US Department of Justice over what the DoJ called its "fostering [of] a culture of securities fraud" which included lying to clients about the prices of mortgage-backed securities, reports the FT. The bank has agreed to pay a US$35 million fine along with US$9 million in compensation to institutional investors that were clients of its asset-backed securities desk. This is separate to a multi-billion dollar penalty RBS is likely to face in the US for mis-selling of mortgage backed securities in the primary market before the global financial crisis. One of HSBC's former top forex dealers has failed in his attempt to fight extradition back to the US to face fraud charges, reports the FT. Stuart Scott managed to get back to the UK but his alleged co-conspirator, Mark Johnson, was not so lucky and was arrested by federal agents while trying to board a flight to the UK. Johnson was convicted earlier this week on the 11 charges arising from a contract with gas and oil company Cairn Energy which hired HSBC to convert the proceeds of an asset sale into US dollars. Investigators found that the bank's traders dominated 75 per cent of the trading in sterling in the five minutes before the "fix', driving it up to its highest price in two days and netting a US$8 million profit for the bank. Scott is expected to appeal the extradition decision. Each charge carries a maximum penalty of 30 years. Credit Bank of Moscow has raised nearly US$250 million in a secondary public offering in an attempt to ease concerns over a widening banking crisis in Russia, reports the FT. The bank is Russia's second-largest private lender. Despite a jump in profits, Barclays fell to the bottom of the FTSE 100 after it also announced a sharp fall in revenues at its investment banking arm, reports the FT. Barclays' stock fell 5.5 per cent to 186p, making it the hardest hit among a series of European banks which reported their third quarter results. Deutsche Bank shares also dropped - falling 1.6 percent after it, along with Barclays, reported drops in fixed income, currencies and commodities trading revenue.