Bonuses under pressure due to heavy bank fines

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Executives of Europe’s biggest banks are under pressure to surrender their bonuses after six companies were fined a record $2.3bn for manipulating benchmark interest rates.

Bloomberg reports that top management at Deutsche Bank, Royal Bank of Scotland and Societe Generale, the firms that received the biggest penalties, should forgo bonuses for this year and 2012 to set an example for others, said Davide Serra, founder of asset management firm Algebris Investments, which oversees $1.3bn of bank shares.

'The guy that runs the show has to take the hit,' Serra said in an interview with Bloomberg Television. 'If the top is not accountable, no one at the bottom of the food chain will be accountable'.

Calls by investors for CEOs to be penalized are intensifying after the European Commission’s record antitrust fine Wednesday pushed sanctions for rate-rigging to $6bn. Firms and their shareholders still face the pain of years of civil lawsuits related to rate manipulation, as well as regulatory settlements stretching from U.S. mortgages to attempts to rig foreign-exchange markets.

To access the complete Bloomberg article hit the link below:

Europe's Bankers Face Calls to Forsake Bonuses Amid Fines

Job Cuts Loom at European Banks as Economy Pinches Fees

image: © Tax Credits

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