Former Royal Bank of Scotland executive to head Bank of Cyprus

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The Royal Bank of Scotland banker who quit in the wake of the bank's fine for rigging Libor has a new job as head of troubled Bank of Cyprus.

John Hourican, the former head of investment banking at RBS, was not implicated in the rate-rigging scandal which led to a £390m fine for the bailed-out bank in February, but he left to demonstrate responsibility.

The 43-year-old has the task of restructuring Bank of Cyprus, which was the first bank in the eurozone to take a slice of customers' savings as part of the international €10bn (£8.5bn) bailout of the island.

"The board of Bank of Cyprus believes this appointment is a key step in restructuring and developing operations of the bank to benefit shareholders, clients and the economy of Cyprus," the bank said, according to Reuters.

At an appearance before the Treasury select committee after the RBS Libor fine, Hourican said he had told colleagues "they should not waste my death" and should clean up the culture of the bank.

He left with a £700,000 payout but left behind £5m in share bonuses. "I will take the ultimate responsibility," Hourican said in February.

Bank of Cyprus has also taken on some of the assets of Cyprus's second largest bank, Popular. Local reports said the Cypriot bank had a shortlist of four candidates for the top job at the bank which lost €2.2bn in 2012.

Powered by article was written by Jill Treanor, for on Tuesday 22nd October 2013 23.18 Europe/London © Guardian News and Media Limited 2010


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