Bankers lose bonuses to cover huge interest rate-fixing fine

Tim Wallace
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CHANCELLOR George Osborne yesterday claimed a victory for taxpayers as the bank said its bonus pool would be reduced and previous payouts to bankers clawed back in light of the fine.

Over the weekend Osborne called for staff to pay the fine, and RBS said yesterday roughly £300m will be cut from pay packets.

“What happened at RBS and other banks is totally unacceptable,” Osborne said. “At my insistence, the bankers, not the taxpayers, will pick up the bill.”

But RBS chairman Sir Philip Hampton said the decision had already been made before the chancellor demanded it.

Meanwhile influential backbench MP John Mann called for the bank to fire everyone related to the scandal.

“This fine does not go far enough. All the staff that were in charge at the time and had knowledge of what was going on should be removed,” said the Labour member of the treasury select committee.

But the bank argued not all those involved deserve to lose their jobs.

Of the 21, six were fired over the scandal and eight had left before they could be punished. Another was fired for an unrelated matter and six have been disciplined.

RBS argues a final warning is appropriate in some cases – one graduate recruit was caught up in the emails after two months at the bank, leading managers to deem a warning the best solution.