Royal Bank of Scotland plans to claw back bonuses from staff to cover the cost of an expected £350m fine for rigging the Libor rate.
Meanwhile, Report Says Libor-Tied Losses at Fannie, Freddie May Top $3 Billion
Telegraph UK-
The state-backed bank has already warned traders that bonuses are likely to be slashed far more deeply than planned this year to pay the fine. Clawbacks have also been threatened if it is found that former awards were made out of inflated profits.
Banks have been instructed by regulators to rein in bonuses this year to build up a cushion of capital to cover potential fines and compensation for past malpractices. Barclays is also believed to be looking at clawbacks.
