Two top RBS executives set to lose jobs over Libor scandal

Jan 11, 2013

CEO Stephen Hester thought to be safe as bank prepares for massive fine from regulators

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TWO of taxpayer-owned Royal Bank of Scotland's most senior executives could be forced to quit as the company settles with regulators over its role in the Libor rate rigging scandal.

The Guardian says that John Hourican, head of RBS’s investment bank, and Peter Nielsen, head of markets, are likely to pay the price of RBS traders’ involvement, even though neither had personal knowledge of the corrupt practice. Chief executive Stephen Hester's job is not thought to be at risk.

RBS is likely to be the third major institution to face massive fines over Libor. Barclays and UBS have already paid hundreds of millions in fines. RBS, which has already fired four staff and suspended others, could announce its settlement before the end of the month.

Libor is the rate at which banks lend to one another and is the basis for setting the cost of trillions of pounds in loans across the globe.

Although Hourican and Nielsen had no direct involvement in the market rigging, and are not thought to have known what was going on, they could still face attempts to claw back their bonus payments. Hourican trousered £3.2 million in 2011 and a windfall of almost £4.8 million from a 2009 bonus, despite slashing thousands of jobs.

The news emerged as top figures from UBS appeared before the Parliamentary Banking Standards Commission. Andrew Tyrie, the Tory MP who chairs the commission, said: "The level of ignorance of the board of UBS is staggering to the point of incredulity"

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