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RBS investment bank head and bonuses face chop as £300m Libor fine looms
by Dylan Lobo on Jan 11, 2013 at 07:48
The Royal Bank of Scotland could use the bonus pot reserved for its investment bankers to recover losses from Libor manipulation fines, which could result in the departure of its investment bank head.
According to reports, the state-owned lender is considering earmarking £150 million of bonus pool to cover the cost of Libor penalties, which are expected to be in the region of £300 million.
The Financial Times also says the bank's investment bank head John Hourican and his right hand man Peter Nielsen could be forced to stand down to bear responsibility for the Libor abuses conducted by junior members the team.
If the speculation proves to be correct, the RBS fine will be bigger than the £290 million dished out to Barclays last summer. A settlement is expected to be reached within three weeks.
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