RBS chief to step down without pay-off after rate-fixing scandal

 

The head of Royal Bank of Scotland's investment arm will stand down and forgo millions of pounds in share awards following political pressure over the Libor-rigging scandal, it has emerged.

John Hourican, who was brought into “rescue” the business after its Government bailout in 2008, will reportedly leave the bank without a payoff and relinquish £4m in share options awarded to him based on past performance.

The details of his exit are due to be announced by RBS on Wednesday with Mr Hourican expected to leave at the end of the month having led the winding-down of the bank's investment operation. The move followed weeks of pressure on RBS, which is 80 per cent taxpayer-owned, to claw-back shares owed to Hourican.

RBS is today expected to agree to pay around £400m in fines to British and American regulators for Libor rate-rigging.

The development emerged after the new Barclays chief executive Antony Jenkins said he was “shredding” the former boss Bob Diamond's legacy. Mr Diamond lost his job when the bank was hit with a £290m fine after traders tried to fix Libor rates.

The beleaguered bank had become “too short-term focused, too aggressive and too self-serving”, Mr Jenkins told the Parliamentary Commission on Banking Standards, in devastating testimony about previous management failures. Mr Jenkins, who plans to outline his own strategy in detail next week, was speaking shortly after the bank set aside a further £1bn to cover compensation to people who were mis-sold payment protection insurance (PPI) and to small businesses that mis-sold interest-rate-swap contracts.

Mr Jenkins told members that changing the bank's culture would take “an iron will” but pledged that “you absolutely will see changes”.

He said: “We should shred the past, where we were too short-termist. We are shredding that legacy.” He spoke after the commission's chairman Andrew Tyrie said: “It doesn't seem to matter what the scandal is, Barclays seems to have a finger in each pie, quite a big one.”

Mr Tyrie also called into question the sincerity of the bank's reform pledges after its chairman Sir David Walker leapt to the defence of its remuneration committee that sets pay rates for top bankers. At an earlier hearing, the pay committee chair Sir John Sunderland said that even with hindsight he would still have paid Mr Diamond a bonus for a 2011, despite the former chief executive saying himself that performance was “unacceptable” with the bank missing targets. Sir David earlier ducked questions about the bank's controversial fundraising during the financial crisis which is now subject to a Serious Fraud Office investigation.

A cash call involving selling shares to Qatar and other investors in the Middle East saw the bank raise enough money to avoid being bailed out by British taxpayers, although the generous terms offered were criticised by some shareholders. Last week, allegations arose that the Qataris were loaned the money to buy the new shares in Barclays by Barclays. Sir David said he could not comment on the situation because it was subject to an investigation.

Committee members were further angered that the bank had blacked out huge sections of a internal report into the “flawed” culture at Barclays Wealth in America. Even the page numbers were inked over.

Barclays said it would consider refiling the report with less “redaction” although names will still be blacked out.

Life and Style
tech
Sport
Farah returns to the track with something to prove
Commonwealth games
News
John Barrowman kisses his male “bride” at a mock Gretna Green during the Commonwealth Games opening ceremony
peopleBarrowman's opening ceremony message to Commonwealth countries where he would be sent to prison for being gay
Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
PROMOTED VIDEO
Sport
Shinji Kagawa and Reece James celebrate after the latter scores in Manchester United's 7-0 victory over LA Galaxy
football
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
film
Life and Style
fashion Designs are part of feminist art project by a British student
News
Very tasty: Vladimir Putin dining alone, perhaps sensibly
news
Life and Style
Listen here: Apple EarPods offer an alternative
techAre custom, 3D printed earbuds the solution?
Arts and Entertainment
Top guns: Cole advised the makers of Second World War film Fury, starring Brad Pitt
filmLt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a uniform
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
News
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
Arts and Entertainment
A scene from Shakespeare in Love at the Noel Coward Theatre
theatreReview: Shakespeare in Love has moments of sheer stage poetry mixed with effervescent fun
News
Joining forces: young British men feature in an Isis video in which they urge Islamists in the West to join them in Iraq and Syria
newsWill the young Britons fighting in Syria be allowed to return home and resume their lives?
Arts and Entertainment
The nomination of 'The Wake' by Paul Kingsnorth has caused a stir
books
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Test Lead - Financial Reporting - Banking - London

£350 - £400 per day: Orgtel: Test Lead, London, Banking, Financial Reporting, ...

Business Analyst, Retail Bank, £375-400p/d

£375 - £400 per day + competitive: Orgtel: My client, a leading bank, is curre...

PMO Analyst - London - Banking - £350 - £400

£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...

Cost Reporting-MI Packs-Edinburgh-Bank-£350/day

£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game