Bank 'cuts bonuses' after huge fine

Press Association

Johnny Green/PA Wire

The bonus pot at state-backed Royal Bank of Scotland will shrink this year as the bank pays an estimated £350 million fine for its role in the interbank lending rate scandal, according to reports.

Traders at the bank's investment 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.