HSBC, RBS Expected to Cut Bonuses After FX Fines
HSBC Holdings Plc and Royal Bank of Scotland Group Plc are expected to reduce bonus pools after deducting part of the fines paid for foreign-exchange manipulation, the Financial Times reported.
Bonus pools at banks including Deutsche Bank AG (DBK) and Barclays Plc (BARC) were also hurt by lower fixed-income trading income and the European Union’s cap on compensation, the FT said, citing unidentified people close to the lenders. Officials for HSBC and RBS declined to comment when contacted by Bloomberg.
HSBC, RBS, UBS AG, JPMorgan Chase & Co. (JPM), Bank of America Corp. and Citigroup Inc. agreed to pay $4.3 billion in fines in November after authorities began a global probe into the rigging of key currency benchmarks in 2013. RBS said last month it suspended bonuses of 18 traders as part of a review of its foreign-exchange business in the wake of its fine.
Goldman Sachs Group Inc. (GS) is forecast to pay about 38 percent of its revenue in salaries and bonuses, about the same as last year’s payout, the FT said.
Source: Bloomberg – HSBC, RBS Expected to Cut Bonuses After FX Fines, FT Reports
