Share

RBS to cut bonuses to pay Libor fines

London - Royal Bank of Scotland is preparing to slash bonuses for its investment bankers this year to help pay fines for its role in an interest rate rigging scandal, a source familiar with the situation said.

The part state-owned bank is expected to face a worse punishment than the $450m paid by rival Barclays following an investigation into the alleged manipulation of the London interbank offered rate (Libor) and other benchmark rates, said the source, who declined to be named.

RBS plans to set aside over £100m, mostly by reducing bonuses but also by clawing back past bonus payments paid to those implicated in the affair, the source said. Last year, the bank paid its investment bankers bonuses totaling £390m.

RBS declined to comment.

The bank is also considering whether two senior executives should be asked to quit when the settlement is announced. John Hourican, head of RBS's investment bank, and Peter Nielsen, head of markets, could be asked to step down, the source told Reuters on Thursday.

Britain's Financial Services Authority is nearly ready to make public the sanctions it will take against RBS and is waiting for US regulators to complete their investigations.

RBS, which is 81% owned by the UK taxpayer following a government bailout, is keen to draw a line under the episode in order to focus on its long-term recovery plan.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders