RBS reviews future of executives as Libor deal nears: source

LONDON Fri Jan 11, 2013 12:09am IST

People use a Royal Bank of Scotland (RBS) cashpoint in Edinburgh, Scotland November 14, 2012. REUTERS/David Moir

People use a Royal Bank of Scotland (RBS) cashpoint in Edinburgh, Scotland November 14, 2012.

Credit: Reuters/David Moir

Stocks

   

LONDON (Reuters) - Royal Bank of Scotland (RBS.L) is considering whether two senior executives should leave as it nears a deal with regulators over its role in a global interest rate rigging scandal, a source familiar with the situation told Reuters.

John Hourican, head of RBS's investment bank and Peter Nielsen, head of markets at the part-nationalized British bank, could be asked to quit at the same time as a settlement over alleged manipulation of the London interbank offered rate (Libor) and other benchmark rates, said the source, who declined to be named.

There was no suggestion during the investigation that either of the bankers had any knowledge of wrongdoing, the source said, adding that no decision had been taken by the bank as to whether to ask them to leave.

Hourican and Nielsen were not available for comment. RBS declined comment.

RBS is expected to face fines greater than the $450 million paid by rival Barclays (BARC.L) over rigging of Libor and other benchmark interest rates used to price trillions of dollars of financial instruments.

Britain's financial regulator, the Financial Services Authority, is keen that more individuals are seen to be held accountable for RBS's role in the affair than the handful of relatively junior traders who have so far been dismissed, the source said.

Barclays' three most senior executives, including Chief Executive Bob Diamond, were forced to leave the bank following its settlement last June.

However, sources have told Reuters that RBS is confident the position of its Chief Executive Stephen Hester is not in danger.

The source said a settlement may be reached as early as the week starting January 21. The Financial Services Authority is nearly ready to make public sanctions it will take against RBS and is waiting for U.S. regulators to complete their investigations.

RBS, which is 81 percent owned by the UK taxpayer following a government bailout, is desperate to draw a line under the episode in order to focus on its long-term recovery plan.

(Reporting by Matt Scuffham; Editing by Matthew Tostevin)

Fast-tracking Projects

REUTERS SHOWCASE

Oil Prices

Oil Prices

Brent oil rises above $62 as energy firms slash investments  Full Article 

Space Programme

Space Programme

ISRO tests its heaviest space launch vehicle, eyes global market   Full Article 

Coal India Strike

Coal India Strike

Coal India workers threaten five-day strike, stokes output worries  Full Article 

Gold Discount

Gold Discount

Dealers offer gold discount for first time in five months  Full Article 

Lakhvi Granted Bail

Lakhvi Granted Bail

Pakistan court bails man accused of masterminding Mumbai attack  Full Article 

GST Bill

GST Bill

Cabinet clears bill for nationwide goods and services tax.  Full Article 

Aviation Sector

Aviation Sector

Breakingviews: SpiceJet rescue is no fix for India aviation woes.  Full Article 

Global Economy

Global Economy

Fed confident on U.S. growth, opens door wider to rate hike.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage