LONDON, Jan 28 (Reuters) - 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 expected departure.
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.