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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.

RBS executives under pressure to go as £300m Libor fine looms

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.

3 comments so far. Why not have your say?

Anthony Tinslay

Jan 11, 2013 at 15:55

What the above report and figures show is that Barclays, having been made the scapegoat by confessing early, were a smaller player in this fiasco than a number of other banks. On the other hand it might be that they were shrewd in coming forward early and agree the fine that otherwise might have been even higher. Doubt that we will ever know

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Rob Walker

Jan 11, 2013 at 15:55

Interesting to compare the furore that hit Barclays with the often-quoted bigger penalty to be applied to RBS but with a surprising absence of damaging publicity. Bob Diamond was the fall-guy they all wanted, now we are talking about Taxpayer's investments we will swiftly move on. The whole news management process stinks.

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Jan 11, 2013 at 17:27

From one disaster to another disaster endowment miss selling PPI insurance

interest rate swaps Libor fixing When is it all going to end. The staff involved seem to leave with a large pay off and large pension. But nobody seems to get punished The shareholders pay up the staff seem to walk away free. Time for a public enquirey in to the banking industry because the public do not trust bankers anymore and clearly the industry is not fit for purpose and it is about time some of our bankers when to jail for a long stretch.

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