Chair of the Parliamentary Commission on Banking Standards Andrew Tyrie has raised concerns that RBS’s pledge to fund Libor misselling fines from staff bonuses will be no more than “creative accounting”.
MPs at a Parliamentary Commission on Banking Standards session this week grilled RBS chairman Philip Hampton (pictured) and chief executive Stephen Hester over the bank’s pledge to recover overseas regulatory fines for manipulating Libor from bankers’ bonuses.
The pair gave assurances but Conservative MP Tyrie said afterwards that MPs were “not given sufficient confidence that the arrangement for funding the fines from bonuses will do what it says on the tin.”
“This must be more than an exercise in creative accounting,” he added.
RBS head of the investment bank John Hourican quit earlier this month. MPs questioned why Hourican is the only senior executive to have stepped down following the scandal.
Hampton said: “We think a single point of accountability is necessary and not a mass series of assassinations.
“We thought that one person should take primary accountability for everything and that should be John Hourican.”