RBS to slash bonuses to pay Libor fines: Source
LONDON (REUTERS) - Royal Bank of Scotland is preparing to slash bonuses for its investment bankers this year to help pay fines for its role in an interest rate rigging scandal, a source familiar with the situation said.
The part state-owned bank is expected to face a worse punishment than the US$450 million (S$551 million) paid by rival Barclays following an investigation into the alleged manipulation of the London interbank offered rate (Libor) and other benchmark rates, said the source, who declined to be named.
RBS plans to set aside over 100 million pounds, mostly by reducing bonuses but also by clawing back past bonus payments paid to those implicated in the affair, the source said. Last year, the bank paid its investment bankers bonuses totaling 390 million pounds.
RBS declined to comment.