Royal Bank of Scotland Group (RBS) is likely to face as much as £500m ($804m) fine from banking regulators over Libor rate rigging scandal, which might be announced next week.
Sources familiar with the matter were quoted by Bloomberg as saying that its investment banking chief John Hourican and markets head Peter Nielsen will step down for their role in the scandal.
RBS traders and their managers tried to influence the firm’s Libor submissions during 2007 and 2010, to get advantage from bets on derivatives, according to transcripts of internal conversations seen by the news agency.
In order to recover amount paid as fine, RBS will get back payments reimbursed in prior years to those involved in the rate manipulation case and cut the investment banking bonus pool by between £100m and £150m.
The final amount and corresponding terms of the settlement have not been disclosed by either regulators or the bank.
In December 2012, banking regulators including the UK Financial Services Authority and the US Commodity Futures Trading Commission and the Justice Department fined Swiss lender UBS $1.5bn, while Barclays paid £290m for fixing London interbank offered rate.