RBS’ investment banking head has lost his job and around £4m in bonuses and shares because he is the senior banker closest to the Libor fixing, rather than because he was involved.
Chief executive Stephen Hester said a head near the top of the bank had to roll to show bosses are accountable for the actions of their departments.
And he said John Hourican fitted the bill as the wrongdoing happened in his department, but to go any further up the bank would take the blame too high up and cause unnecessary damage.
“It is very tough on John – it happened a long way down his organisation,” said Hester. “But it is right that senior management accountability has to be accepted. It is right for John to lose his job.” and suffer a financial penalty – it is pretty harsh treatment, he is losing of all of his clawbackable pay.”