LONDON – The fine that Britain's Royal Bank of Scotland must pay U.S. authorities over allegations it manipulated global benchmark interest rates must come from the pay and bonuses of RBS staff, the British government said on Wednesday.
"In the case of the U.S. authorities' fines, I am insistent that the taxpayer should not foot the bill. That is why these fines must be met in full from past, present and future reductions in the bonuses and pay of RBS," Greg Clark, Financial Secretary to the Treasury, told parliament.
Earlier on Wednesday, was hit with fines of $615 million by U.S. and British authorities to settle allegations it manipulated key interest rate benchmarks including the London interbank offered rate (Libor).
RBS has been 82 percent owned by the British government since it was bailed out in the 2008 financial crisis.
(Reporting by Andrew Osborn and Peter Griffiths; Editing by Andrew Osborn)