LONDON Jan 28 State-run Royal Bank of Scotland
is to pay as much as 250 million pounds in bonuses to
employees at an investment banking division heavily implicated
in the Libor-rigging scandal, the Financial Times reported on
its website on Monday.
British taxpayers will effectively be paying RBS' investment
bankers the sum just as the bank is expected to fork out up to
500 million pounds to settle a fine related to the Libor
interbank lending rate scandal, the FT said.
An unidentified ally of UK Chancellor George Osborne cited
in the newspaper said the controversy would not be "as
high-octane" as the 2012 row over the 1 million pound bonus
offered to Chief Executive Stephen Hester.
According to a separate report in The Guardian newspaper,
the head of the RBS investment bank, John Hourican, is due to
receive share bonuses worth 4 million pounds, weeks before his
The bonuses form part of a number of packages awarded to
Hourican after the bank was bailed out in 2008 but deferred for
a number of years, according to the newspaper.
RBS, when contacted by Reuters, would not comment on any
payout to Hourican or figure relating to the overall bonus pool.
RBS received a 45.5 billion pound bailout from the British
government in 2008 which saved the bank from collapse.