By City Finance Reporter
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Under pressure: Royal Bank of Scotland boss Stephen Hester has agreed to forgo a bonus worth up to £2.4m
The mounting financial scandals engulfing taxpayer-backed Royal Bank of Scotland has hit boss Stephen Hester in the pocket.
The banking chief yesterday bowed to political pressure by agreeing to forgo a bonus worth up to £2.4m after the Financial Services Authority named RBS as one of four banks implicated in the mis-selling of complex financial instruments to small businesses.
‘I think it is inappropriate for me to have a bonus this year. We have let our customers down,’ said Mr Hester.
RBS is now facing lawsuits from thousands of small companies.
Analysts believe the four banks identified by the FSA â€" RBS, Barclays, HSBC and Lloyds â€" will be forced to pay out £1.4bn between them, although Barclays is expected to bear the brunt.
The bank is also co-operating with the FSA and overseas regulators over an investigation into interest rate manipulation, which led to Barclays paying a £290m fine on Wednesday.
Tan Chi Min, who was the head of Delta Trading at RBS’ Global Banking and Markets division in Singapore until he was fired last year, is claiming in an unfair dismissal suit senior managers at RBS in Singapore ordered him to illegally fix prices.
‘It was common practice among senior RBS employees to make requests to the bank’s rate setters as to the appropriate LIBOR rate,†™ he alleges. RBS denies the allegations.
RBS has also been hit by an IT failure that saw customers of its NatWest and Ulster Bank divisions without cash after the bank failed to clear wage payments.
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How does Stephen Hester not taking his bonus this year help the many customers who were severely affected by the bank's software debacle? What an empty gesture - and he still gets his massively excessive salary!!
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He really has a handle on the Group doesn't he. With the LIBOR scandal, this and the fact that the RBS group cannot run a bank, in my opinion, he should give up his salary and RBS should have their banking licence revoked. Lets see how the Bank of England deal with this one.
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Well his bank have some how lost £640 pounds of a credit card payment i made last thursday and depite sending them proof of payment and calling them 5 times nothing has been done and they wont admit they are having computer problems and they are just fobbing me off!! In short bonus! Fall on your sword sir!
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