By Max Colchester
LONDON-- Royal Bank of Scotland Group PLC has suspended the
bonus payments of 18 individuals, pending a review of their
involvement in the bank's alleged rigging of foreign exchange
rates.
In November, RBS paid GBP217 million in fines to U.S. and U.K.
regulators to settle allegations of foreign exchange rate rigging.
Following the fines, RBS pledged to investigate the conduct of
traders and their managers. At the time, the 80% state-owned bank
said it was looking into the behavior of 50 current and former
staff, as well as dozens of supervisors and senior managers.
So far the bank has begun disciplining six people, three of whom
were suspended. On Tuesday, the bank said it would finish its
internal review by the first quarter of next year.
"To be clear no further bonus payments will be made or unvested
bonus awards released to those in scope of the review until it has
concluded and its recommendations have been considered by the
Remuneration Committee and the Board Risk Committee," said Jon
Pain, the head of conduct and regulatory affairs at RBS, who is
leading the internal probe.
Meanwhile, the bank is still in discussions to settle rigging
allegations with other regulators, including the U.S. Department of
Justice.
Write to Max Colchester at max.colchester@wsj.com
Access Investor Kit for Royal Bank of Scotland Group Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B7T77214
Access Investor Kit for Royal Bank of Scotland Group Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US7800976893