The London Evening Standard says that the bonus pot at state-backed Royal Bank of Scotland will shrink this year as the bank pays an estimated $565m fine for its role in the interbank lending rate scandal, according to reports.
Traders at the bank's investment banking arm have been told by senior staff the bonus pool will be smaller as cash is diverted to settle claims that it was involved in the Libor rigging controversy, according to the Sunday Times.
In the meantime, The Daily Telegraph reports that UK regulator Financial Services Authority has not launched a single enforcement action against any regulated business for failing to comply with its remuneration code since the rules were introduced three years ago.
Legal sources said there was disbelief in the City at the lack of action by the regulator to enforce its own code and that there was widespread evidence of breaches of the rules.
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