Pressure mounts on two RBS executives to quit over Libor-rigging as fine looms

RBS Royal Bank of Scotland 440

Two of Royal Bank of Scotland’s highest paid executives are under pressure to resign and hand back bonus payments over the bank’s alleged involvement in the Libor-rigging scandal.

According to reports RBS is close to a settlement with US and UK regulators that is likely to see the bank fined at least £200m. Reports state RBS’s investment bank head John Hourican and head of markets Peter Nielson are “under pressure” to step down.

It has been reported that the pair have earned over £30m over the past four years. There is no suggestion either of them knew of the alleged manipulation of Libor but it is thought RBS and the FSA are concerned about the culture of the investment banking division.

Insiders reportedly claim the bank wants the pair to leave without having to pay large sums and wants to be able to claw back bonuses paid over the past three years.

In July, Barclays was fined £290m for its role in the rate-rigging scandal while UBS was fined a total of £940m for Libor-rigging in December.