Off with their heads!
Bloomberg reports that U.K. Chancellor of the Exchequer George Osborne has said that Royal Bank of Scotland managers who oversaw the money-markets business should be held accountable for the alleged manipulation of interest rates.
'Those who were doing the supervising must also bear their share of the responsibility', Osborne said Monday. 'The RBS board and the RBS senior management are well aware of that and decisions are in hand'.
RBS may pay as much as $786m in fines to U.K. and U.S. regulators as early as this week to settle allegations traders tried to rig the London interbank offered rate, two people with knowledge of the matter said last month. Investment banking chief John Hourican is expected to resign because he had responsibility for the parts of the company where the alleged wrongdoing occurred, even though he didn’t have direct knowledge of the behavior, the people said.
The bank, which started an internal probe in 2010, has so far dismissed four bankers and suspended at least three others, including Jezri Mohideen, head of rates trading for Europe and the Asia-Pacific region. Osborne gave his backing to Chief Executive Officer Stephen Hester.
Osborne also said that RBS should pay the U.S. portion of the fine by cutting investment-banker bonuses and clawing back discretionary awards from previous years.
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image: © Torpe