View the article online at http://citywire.co.uk/money/article/a650172
RBS executives under pressure to go as £300m Libor fine looms
Two Royal Bank of Scotland senior executives are facing mounting pressure to leave the bank as it braces itself for a fine of at least £300 million for Libor manipulation.
Two Royal Bank of Scotland (RBS) senior executives are facing mounting pressure to leave the bank as it braces itself for a fine of at least £300 million for Libor manipulation, according to reports.
According to the Daily Telegraph John Hourican, head of RBS’s investment bank, and Peter Nielson, head of markets, are understood to be ‘under pressure’ to step down and hand back up to £15m in bonuses.
Hourican and Nielson are reportedly two of the best paid bankers at RBS and have together earned in excess of £30 million in the past four years.
The Telegraph reported that there is no suggestion either man knew about the alleged manipulation of Libor.
It said that RBS and regulators are thought to be concerned over the ‘culture’ of the investment banking division, which allowed Libor-rigging to happen while the two were at the helm.
According to the BBC’s Robert Peston, RBS Libor fines – from both the Financial Services Authority (FSA) and US regulators, will run to several hundred million pounds, more than the £290 million fines paid by Barclays.
In December 2012 UBS paid £940m in fines for attempted Libor rate manipulations.
According to the Financial Times, the bank may seek to divert up to £150 million of its bonus pot to fund the fine.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
What others are saying
Tools from Citywire Money
From the Forums+ Start a new discussion
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.