Royal Bank of Scotland is preparing to slash bonuses for its investment bankers this year to help pay fines for its role in an interest rate rigging scandal, a source familiar with the situation said.
Reuters reports that RBS plans to set aside over $161m, mostly by reducing bonuses but also by clawing back past bonus payments paid to those implicated in the affair, the source said. Last year, the bank paid its investment bankers bonuses totalling $629m pounds.
In the meantime, the news agency also reports that Germany's financial regulator will question Deutsche Bank's leaders in coming weeks as part of a probe into the manipulation of the Libor rate, two sources familiar with the investigation said.
Deutsche Bank Chairman Paul Achleitner and Co-Chief Executives Anshu Jain and Juergen Fitschen are among those due to be questioned by Bafin, the sources said on Friday.
Finally, Reuters reports that electricity regulators are in settlement talks with Deutsche Bank over allegations the bank manipulated the California electricity market, staff of the Federal Energy Regulatory Commission said in a filing Friday.
FERC proposed Deutsche pay a $1.5m fine and disgorge of $123,198 in alleged ill-gotten profits last year.