RBS reshuffle looms ahead of Libor fines

Tim Wallace
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OR RBS bankers are likely to lose their jobs over the Libor-fixing scandal as the state-backed institution looks to satisfy investors, politicians and the public that individuals have been punished, it emerged yesterday.

Investment bank boss John Hourican and markets head Peter Nielsen are believed to be potential casualties.

Neither was involved in Libor fixing, or even knew it was taking place. But it is thought that RBS and the Financial Services Authority are discussing the loss of senior bankers who were in post at the time to show critics the bank has made amends.

Barclays’ chief executive Bob Diamond left in the storm following the Libor revelations last summer.

But RBS chief Stephen Hester is not likely to follow suit, as he was brought in only after the financial crisis to clean up the bank.

RBS wants to settle the Libor fixing claims with the FSA and the US regulators before its full year results next month to move on from the scandal.

That will make it the third bank to be punished, after Barclays and UBS.

It is currently in negotiations with the regulators and is expected to settle in the coming weeks. The size of its fine is not known, but is expected to be larger than Barclays’ £290m.

“Discussions with various authorities in relation to Libor setting are ongoing,” said RBS in a statement.

The FSA declined to comment.