Irish banker to quit RBS as lender restructures itself
ONE of the most senior Irish men working in the City of London is set to leave his post at Royal Bank of Scotland in the wake of the LIBOR trading scandal.
John Hourican, pictured, who is head of investment banking at RBS, is reportedly in negotiations with the bank over a severance package as the bank seeks to complete an internal restructuring.
Earlier this month it emerged that while Mr Hourican had no knowledge that traders were submitting false interest rates as part of the LIBOR process, regulators were keen to see heads roll in an effort to draw a line under the scandal and change the culture within the business.
There is no suggestion whatsoever of wrongdoing on Mr Hourican's part.
Under the severance deal, it is expected that the banker will not receive a cash payout, but shares that were given to him last year will vest, giving him a huge windfall.
Mr Hourican was chief financial officer with the Dutch bank ABN Amro before it merged with RBS in 2006. Since the crash, he has worked on restructuring the investment banking business within RBS and effectively splitting it into two divisions that will report directly to group chief executive Stephen Hester.
RBS is just one of several investment banks that are either facing or have paid fines worth hundreds of millions of euro because of the LIBOR scandal. The benchmark for more than a trillion dollars worth of financial instruments, LIBOR is the interest rate at which banks lend to each other. Last year it emerged several banks had been submitting rates that did not reflect their true borrowing power.