• 11 Jan 2013 at 11:11 AM

RBS: Those Libor Fines Don’t Pay For Themselves!

Like many of its peers in the banking world, RBS used to make a habit of manipulating Libor (among other things). And, as recent reports suggest, the Royalest Bank of Scotland is probably going to be forced to cough up £300m (and fire a couple execs) to convince the government everyone is very sorry and it won’t happen again. How does the bank, which has not had a money-making quarter since the financial crisis,* plan to come up with the cash? By 1) taking back bonuses that were already paid out to people who were involved in the scandal and 2) reducing everyone‘s bonus this year.

The part state-owned bank is expected to face a worse punishment than the $450 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 ($161 million), 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.

Probably goes without saying that birthday chickens are out until further notice.

RBS to slash bonuses to pay Libor fines: source [Reuters]
RBS Brass In Rate Spotlight [WSJ]
RBS Libor Fine Could Be £300m, Two Executives Under Pressure To Resign [HPB]
*Is there a reason not to just pack it in at this point? What are they trying to prove here?

26 comments (hidden to protect delicate sensibilities)
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Comments (26)

  1. Posted by Panda | January 11, 2013 at 11:15 AM

    1st post fiscal cliff paycheck makes me a sad, sad, panda.

  2. Posted by guest | January 11, 2013 at 11:22 AM

    Go on.

  3. Posted by Honda of Stamford | January 11, 2013 at 11:32 AM

    They can't claw back cars, can they?

  4. Posted by Beamer's | January 11, 2013 at 11:33 AM

    That's why we've been getting coins lately.

  5. Posted by Hourican's CPA | January 11, 2013 at 11:36 AM

    "The bank is also considering whether two senior executives should be asked to quit when the settlement is announced. John Hourican, head of RBS's investment bank, and Peter Nielsen, head of markets, could be asked to step down."

    But we're OK! We sold out in 2012!

    "Mr Hourican, the head of global banking and markets at RBS, sold 17.6m shares on Wednesday at a price of 27p, netting him £4.77m.

    Mr Hourican was granted the share option back in 2009, just months after RBS had to be rescued with £45.5bn of direct state support and hundreds of billions of pounds of taxpayer loans and guarantees.

    The shares sold on Wednesday equal just over 80pc of 21.3m shares granted to him three years ago as part of a controversial multi-million pound pay package.

    He still has several million RBS shares and options as part of subsequent payouts. In March 2010, Mr Hourican received a package worth £7.7m, consisting of £700,000 in salary, a short-term bonus of 15.5m shares worth £5.9m at the time, as well as a further 1.6m shares as part of a longer-term performance award worth £770,000."

  6. Posted by Guest | January 11, 2013 at 11:45 AM

    Don't just stare at it, eat it!

  7. Posted by Best Cosplays EVER! | January 11, 2013 at 11:45 AM

    Did Shazar's chihuahua eat the DB IT hamster? There are only two articles on the front page, this one and that freaking King of the Nerds sponsored posting. Either feed that poor hamster better or make the goddamn dog spin the wheel!

  8. Posted by pazzo83 | January 11, 2013 at 11:49 AM

    Try the pork!

    – Congress

  9. Posted by pazzo83 | January 11, 2013 at 11:54 AM

    "Last year, the bank paid its investment bankers bonuses totaling 390 million pounds."

    Ah, I remember my slimmer days…

    – M Moore

  10. Posted by Guest | January 11, 2013 at 12:13 PM

    Isn't it really a "part not-state-owned bank"?

  11. Posted by Ping Capital | January 11, 2013 at 12:16 PM

    Here's a marker, how about you write that on my whiteboard?

  12. Posted by DB IT Hamster | January 11, 2013 at 12:22 PM

    Sorry, I'm running a bit low on energy today. My first post-cliff ration of pellets was slightly smaller than I'm used to.

  13. Posted by 2_Small_2_Bail | January 11, 2013 at 12:41 PM

    We're going back to our roots to try to turn this thing around. We're going to give everyone steeds, jousting sticks, and armor for a bonus this year to remind them of a simpler time….wait, no money for that? OK scrap that…we'll just have everyone run at each other with their putters.

    -RBS Comp Committee

  14. Posted by H. S. Thompson | January 11, 2013 at 12:47 PM

    In a closed society run by crooks, the only crime is getting caught.

  15. Posted by Culture Quant | January 11, 2013 at 1:15 PM

    Jousting… A time-honored Scottish tradition…

    You did accidentally manage to work in golf though, lucky bastard.

  16. Posted by Disgruntled Guest | January 11, 2013 at 1:26 PM

    Fix the website you lazy bums

  17. Posted by PermaGuestII | January 11, 2013 at 1:31 PM

    Caber tossing would be both cost-effective (used telephone poles) and more culturally appropriate.

  18. Posted by guest | January 11, 2013 at 1:38 PM

    This job is not all it’s cracked up to be. In fact, it’s just too damn hard to scratch out a living. It is Fryday so I am leaving early to get basted.

    RBS Chicken

  19. Posted by Paint Chip coni | January 11, 2013 at 1:45 PM

    15 Reasons Why Toys In The 90s Were Just Plain Better! WTF is a Cosplay? AHHHH!

  20. Posted by Sanders, Col. (Ret.) | January 11, 2013 at 3:14 PM

    Feeling plucky, are we?

  21. Posted by Sanders, Col. (Ret.) | January 11, 2013 at 3:35 PM

    If someone could get this goddamn chihuahua to stop yapping, things would be running a lot more smoothly.

  22. Posted by HighFrequencyHater | January 11, 2013 at 4:19 PM

    Put "Cosplay" into google; wish I didn't

  23. Posted by PermaGuestII | January 11, 2013 at 4:37 PM

    "Cosplay, short for 'costume play,' is a type of performance art in which participants wear costumes and accessories to represent a specific character or idea. Cosplayers often interact to create a subculture centered on role play… Favorite sources include manga and anime, comic books, video games and films"

    Apparently it is quite literally big in Japan.

    Who the fuck are these ads aimed at and why are they on Dealbreaker?

  24. Posted by buboe | January 13, 2013 at 6:15 PM

    Cry me a river, fat boy

  25. Posted by sohbet | May 12, 2013 at 6:22 PM

    telling these little stories, here's a good idea: Have a point. It makes it so much more interesting for the listener.

  26. Posted by sohbet | July 8, 2013 at 9:22 PM

    officers to investigate Blackstone's fishy financial transactions, but they wound up giving them