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

Those rate rigging penalties aren't going to pay for themselves.
Author:
Publish date:

Also, the no cell phone rule on the trading floor still stands. You can have them back when you've earned them.

Royal Bank of Scotland Group Plc is assessing the behavior of employees at its investment bank and considering bonus cuts after taking a $669 million fine from U.S. authorities for rigging currency markets. The “thorough review” into currency traders’ conduct at the Corporate and Institutional Banking division has so far led to the dismissal of three employees while two were suspended, RBS said in a statement on Wednesday. The bank will take the latest fines into account when taking decisions on future compensation, it said without elaborating...As part of tougher internal controls, RBS imposed restrictions on messaging and chat rooms, banned mobile phones on trading floors and stepped up its surveillance.

RBS Assessing Conduct, Mulling Bonus Cuts After Currency Fine [Bloomberg]

Related

News

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.