Massive Fraud On His Watch And Gets Rewarded..... Bazinga

[bazwillrun]

http://www.scotsman.com/business/banking/rbs-stephen-hestor-to-get-bonus-despite-libor-row-1-2783981
It just gets better and better

for two years whilst he was its top banana the bank was still fixing the Libor Rate

yup, another fine example of how all in it together we are !

so £780,000 shares with an option to sell after one year, banks fine was £300k...theres only one thing to really do here, isnt there Steve, c'mon Steve dont be shy you know what i'm getting at dont you !

All that fraud, no police intervention, nothing , he gets a bonus bigger than the banks fine...am I missing something here ?

[daffy654]

The fine was £300 million wasn't it?

[factor-fiction]

It doesn't look good- but do you really understand what the impact was of the LIBOR rigging, baz, and what his bonus might have been (for achieving other targets) if the fine hadn't been levied on the RBS bonus pot.
I am concerned though that the reduction in the bonus pots to cover the fine will hit ordinary RBS workers rather than those who were or should have been aware of it.

[bazwillrun]

yes daffy,I am missing something ...a zero !

"It doesn't look good- but do you really understand what the impact was of the LIBOR rigging, baz, and what his bonus might have been (for achieving other targets) if the fine hadn't been levied on the RBS bonus pot. "

I do actually, for some strange reason most of my friends are in banking (a few quite senior and two in RBS ! so thanks to them i have a very good knowledge of LIBOR etc , they also cant understand why no criminal proceedings and why hes getting any bonus taking into account the current circumstances and situation.

when they say they cant understand they have their own ideas as to why no criminal proceedings and his bonus is being paid

[factor-fiction]

One zero? Make that 3!

[pdq1]

They said because he has foregone his bonus for the past 3 years he deserved something to make up for it. But has RBS ever made a profit under his helm. Surely you should get a bonus for positive results not loss making ones.

[bazwillrun]

with numerical skills like that I should be working in a bank !

[LazyGun]

This Hester chappie seems to have the proverbial nine lives - Hanging on by his fingertips.

I think he is very lucky to still be in post - CEOs of other companies have been sacked for much less...

[factor-fiction]

This is a pretty good article about the issue
http://www.channel4.com/news/libor-rate-fixing-scandal-the-key-questions

The manipulation, whilst minimal, involved around 20 banks, including RBS, UBS and Barclays. UBS received the largest fine. Investigators found that 21 RBS employees had been involved in wrongdoing, and those responsible have now either left the bank or been sacked or disciplined.

The article is slightly misleading though in that the LIBOR rate is not set at the average- I recall the rate is based on some sort of median (after excluding any outliers), so it may be that the submission of higher or lower data did not actually affect the LIBOR rate.

I'm not sure whether this is an issue for criminal proceedings. I'm not even sure there were any losses to anyone