Not a happy Christmas.
The bank is reviewing the conduct of more than 50 current and former traders who worked at the investment bank, it said in a statement Tuesday. Six employees face disciplinary action, with three of them suspended pending investigations.
A former RBS trader was arrested on December 19th in relation to the U.K. Serious Fraud Office’s investigation into currency rigging, according to a person with knowledge of the situation, who asked not to be identified because the details are private. Regulators in the U.S., Britain and Switzerland last month ordered six banks, including RBS and HSBC, to pay about $4.3 billion to settle a probe into the rigging of foreign-exchange rates.
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Here's the RBS statement in full:
'Following the recent settlement with regulators in relation to failings in the bank’s Foreign Exchange business, RBS announced that it was undertaking a robust and widespread accountability review.
We said at the time that a thorough review would take time to complete, and committed to providing an update on progress before the end of the year, which we are now doing.
As part of the accountability review process, the bank is reviewing the conduct of more than 50 current and former traders who were involved in the area of the Corporate & Institutional Banking division that was the focus of regulators’ investigations.
The second strand of the review, relating to the supervisors and senior management responsible for the FX business at the time of the misconduct, has identified a number of individuals whose responsibilities and accountabilities are also being considered.
The process is being led by Jon Pain, Head of Conduct and Regulatory Affairs.
As a result of investigations so far, six employees have been placed into a disciplinary process, three of whom are currently suspended, pending continuing investigations.
These investigations are complex, and the bank is striving to complete the review as soon as possible. The bank will provide a further update when the review is complete, which we expect to be in the first quarter.
Currently the unvested awards of 18 individuals remain suspended pending the outcome of the review. The awards will not vest until the process is complete.
RBS Head of Conduct and Regulatory Affairs Jon Pain said: 'We are undertaking a robust and thorough review into the actions of the traders that caused this wrongdoing and the management that oversaw it. This is a complicated process but also an essential one in order to identify culpability and accountability for this unacceptable misconduct.
'To be clear no further bonus payments will be made or unvested bonus awards released to those in scope of the review until it has concluded and its recommendations have been considered by the Remuneration Committee and the Board Risk Committee.
'There is no place for any misconduct at the RBS we are building. We want to get these things settled so we can put these issues behind us and get on with rebuilding trust in this bank'.