Richard Partington London
Royal Bank of Scotland (RBS) was assessing the behaviour of employees at its investment bank and considers cutting bonuses after it took a $669 million (R8.02 billion) fine by US authorities for rigging currency markets.
The “thorough review” into currency traders’ conduct at the Corporate and Institutional Banking division had so far led to the dismissal of three employees, while two were suspended, RBS said yesterday. The bank would take the latest fines into account when taking decisions on future compensation, it said.
RBS chief executive Ross McEwan’s efforts to overhaul the lender’s culture and return it to profit have been overshadowed by a series of fines. The lender was among six banks paying $5.8bn in yesterday’s settlement, with five of them – including RBS and British rival Barclays – pleading guilty to charges tied to a currency-rigging probe.
“It has taken far longer than anyone hoped to root out all the past conduct problems and practices and as a result we still have significant challenges on the horizon,” McEwan said. The bank would “hold those responsible fully to account,” he added.
RBS shares rose 1.9 percent to 355.2p in the afternoon in London. They have decreased about 9.9 percent this year. – Bloomberg