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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

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.

12 comments so far. Why not have your say?


Jan 11, 2013 at 08:09

"Hourican and Nielson are reportedly two of the best paid bankers at RBS "

I would be very interested to find out how much their colleagues get paid - £30m between them over four years is obscene!

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Jan 11, 2013 at 08:55

"Under pressure"?

Not really.

If you want to know what "under pressure" really means, ask a guy trying to eke out a living from a small IFA firm.

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John Smyth 3

Jan 11, 2013 at 10:01

Don't believe their rubbish about they did not know.

They knew alright and on the off chance that they really did not then they were incompetent and should walk for that..

When things go well the guys at the top take the major credit but when things go wrong it is never their fault.

When are we going to see some prosecutions for fraud because that is what it was?

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The ssinnic

Jan 11, 2013 at 10:24

Jessops former CEO reckons bank problems have been the cause of their demise. And the question is: how many other businesses and individuals have been the victims of unfair and illegal bank treatment of the sort related to unfair interest rate terms and loans linked to an artificially produced interest rate such as LIBOR. How many businesses have been paying through the nose onunfair terms, eh? Please Mr Bankers, don't try telling anyone over the age of 5 that you conduct business on fair terms! The words "fair" and "honest" don't seem to be part of the Concise Banker's Dictionary.

When are the lawyers going to get on with a mass class action here? Nearly everyone in the country is a victim...certainly businesses, whether solvent , existant, survivors, or liquidated. There's enough work out there for the Legal Profession to share out and still more to spare! And the expert witnesses to emerge from this...the mind boggles.

The Ssinnic can't wait...too excited to write more!

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Paul Nedas

Jan 11, 2013 at 11:36

The Bankers' Dilemna

Merely incompetent or deliberate.

If deliberate, then it's criminal & should be prosecuted.

If merely incompetent, then demotion or removal from industry.

Since 2007 how many:

1. board-level executives have been removed from banking?

2. senior & middle management have been demoted or removed?

Of course, same questions should be asked of regulators.

Most concerning is where can the replacements who are are honest & competent be found?

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complacency rules

Jan 11, 2013 at 13:39

These 2 either knew about the LIBOR fraud, or if they did not know were incompetent, either way the very least is that they should lose their their jobs and their bonuses. However, this whole issue was a fraud so where are the criminal prosecutions? The Barclays 2 also lost their jobs and current bonuses, but the past bonuses represented profits from a crime and should be claimed by the authorities in accordance with existing legislation.

The banks have been getting away with all sorts of fraudulent activity, such as massive money laundering illegalities, miss selling of PPI, fiddling the LIBOR figures, and have almost brought the economy to its knees, and yet legal action has been taken against very few individuals. Several people in charge of these institutions when these problems were happening arenow in government, and one of the main regulators has just been given a Knighthood for looking the other way, as well as a highly paid job by one of the worst offending banks.

Unless legal proceedings are taken against these people and examples set there is nothing to deter future bank officials from doing more of the same, or similar. Anyone know who is responsible for instigating such legal proceedings? Perhaps we should be lobbying those people to do their jobs properly.

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Ian Ashleigh

Jan 11, 2013 at 20:03

Until senior individuals within banks are seriously and personally fined and also otherwise sanctioned (a euphamism for imprisonment) this issue will never go away.

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Ian Lees

Jan 13, 2013 at 11:08

Am I to assume that RBS lost out again to Barclays Bank - when Hectror decided to join Barclays ahead of RBS ? to "earn", his knighthood ?

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forestbhoy via mobile

Jan 13, 2013 at 23:58

The banks run this country,and have done for a long time. Why the surprise ???

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Ian Lees

Jan 14, 2013 at 13:40

RBS executives " under pressure " to resign ? Will they be purchased by Barclays - like hector le Sant ? to promote and encourage further misleading mischevious or just plain fraud against consumers ?

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michael coxson

Jan 15, 2013 at 15:06

Waste of time expecting the law to do anything, They own the law,I know what i would but i cant say it here.

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michael coxson

Jan 15, 2013 at 15:13

Thats assuming that all those involved can be proved to be guilty?????? Oh sorry the law is involved again, no wonder the young are Pi@@@@d off with this country. I love this country and can remember when bankers were GENTLEMEN...

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