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RBS executives under pressure to go as £300m Libor fine looms
by Alex Steger on Jan 11, 2013 at 07:22
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.
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