Osborne warns bankers Libor fines will come out of bonuses
Royal Bank of Scotland braced for huge fine
George Osborne's staff claim the chancellor has "laid down the law" to bankers, saying that fines for the Libor rate-rigging scandal must come out of their bonuses.
State-backed Royal Bank of Scotland (RBS) is braced for a huge fine from American regulators, as it becomes the third bank to settle over its traders’ role in the scandal.
The Government still owns four fifths of the bank, saved from collapse by a £45bn bailout four years ago, in the wake of the ill-advised acquisition of Dutch bank ABN Amro.
Senior RBS figures were warned that leaving taxpayers to cover the US penalty for the bank's role in fixing the lending rate, which governs the price of more than $500 trillion-worth of loans and transactions around the world, would be "totally unacceptable".
RBS is rumoured to be preparing to hold back on some perks in preparation for the fines, and is thought to be close to reaching a deal with regulators in Britain, America, Japan and Singapore. It faces a total fine of £350 million.
A senior Treasury source said: "Fixing the Libor market is a symbol of all that went wrong with the banking system over the past 10 years. We are now putting those things right.
"Ahead of any other country, we legislated to make abuse of the system a criminal offence and are stripping the banks of the power to administer it themselves.
"The authorities are rightly pursuing those individuals who abused the system; and the regulators are rightly fining the banks they worked for.
"We all know there are Libor investigations ongoing into RBS in both the UK and the US. Any UK fine will already go to the public, and the Chancellor has made it clear that on this occasion the bill for any US fine should be paid for by the bankers, and not the taxpayer."
Last year Barclays was fined a total of £290 million, of which £58.5 million was in the UK, while UBS was hit by a global fine of £940 million, including a £160 million UK penalty.
- 1 Pope Francis issues top 10 tips for happiness
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 5 Israel's propaganda machine is finally starting to misfire
Russell Brand accuses Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness
Justin Bieber posts Instagram photo of a crying Orlando Bloom after Ibiza fight 'over Miranda Kerr'
Disney heiress Abigail disowns her share of family profits in West Bank company
Air Algerie AH5017 crash: Jet fell 30,000 feet in three minutes ‘due to violent storm’
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
£180 - £250 per day + competitive: Orgtel: Financial Accountants - Key Banking...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £25000 per annum + Commission: SThree: Computer Futures are currently...
£18000 - £27000 per annum + Commission: SThree: Sales - Trainee Recruitment Co...