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RBS withholds bonuses due to forex probe

RBS is witholding bonuses from 18 members of staff while it investigates their involvement in the foreign exchange rate rigging scandal.

The move comes as part of the bank’s in-house investigation of forex manipulation which has already cost the banking industry billions in fines, the BBC reports.

The bank is holding an internal inquiry focussing on around 50 current and former RBS employees , with six members of staff already disciplined as a result. Two RBS traders were suspended in October.

RBS head of conduct and regulatory affairs Jon Pain says: “We are undertaking a robust and thorough review into the actions of the traders that caused this wrongdoing and the management that oversaw it.”

He adds: “This is a complicated process but also an essential one in order to identify culpability and accountability for this unacceptable misconduct.

“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,”

Six banks were fined nearly £2bn by regulators in the UK, US and Switzerland after being found guilting of attempting to fix the forex market for several years, of which RBS paid £217m.

Barclays and Deutsche Bank were not part of that settlement and are still under investigation by the US Departmant of Financial Services, with a focus on how computer alogorithms were used to manipulate rates.

Barclays has already set aside at least £500m for the outcome of the probe.

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