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RBS Puts 10,000 Employees' Pay On Ice

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Earlier today the Royal Bank of Scotland reported a loss of £2 billion ($3.13 billion) for last year, which CEO Stephen Hester noted was in line with the estimates he projected in his five-year turnaround plan for the bank. To that end, Hester told reporters that contrary to popular belief, his team is working quite hard, "defusing the biggest-ever time bomb put in a banking balance sheet" and so, looking at it that way, "we are making progress." Progress which should be rewarded monetarily, which is why bonuses were in fact distributed this year, to the ire of the many, many critics giving Hester guff for keeping his people moderately happy or at least not homicidal. Having said that, those thinking the firm has the money to not only pay bonuses but raise base pay *and* bring in dancing chickens should think again.

Royal Bank of Scotland Group will freeze the pay of its 10,000 highest-earning employees, bank Chairman Sir Philip Hampton said Thursday. The decision comes as the bank looks to defuse public and government anger over banker pay. On Thursday, the bank announced it would pay nearly £1 billion ($1.57 billion) in variable remuneration for its staff. However, the bank said it lowered bonus pay to its highest-earning investment bank employees by nearly 60 percent, a move that was praised by the UK chancellor of the exchequer.

RBS to freeze pay of 10,000 highest earners [NYP]


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.

9-Figure Fine Might Have A Negative Effect On Bonuses: RBS

Those rate rigging penalties aren't going to pay for themselves.