Libor scandal forces RBS official out

AFP-JIJI

The head of the Royal Bank of Scotland’s investment banking arm is to step down over the Libor rate-rigging scandal, British media reported Tuesday.

John Hourican is to give up £4 million ($6.32 million) in past share awards when he quits the state-rescued British bank, Sky News television reported. The BBC quoted sources who said Hourican, who has been at RBS for 17 years, was being forced out even though most of the fixing happened before he took over as head of its investment banking division in late 2008.

His expected resignation comes as Dow Jones Newswires reported that RBS was to announce Wednesday that it will settle its part in the scandal by paying U.S. and British authorities up to £500 million ($780 million). The Libor, or London Interbank Offered Rate, estimates the rates at which banks lend money to each other and is used to calculate huge numbers of financial contracts around the world.