Late Links: Barclays cut bonuses far more harshly than RBS following Libor scandal

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Sky News reported today that Barclays will punishing its bankers harshly for their involvement in the Libor scandal. Barclays' UK and US Libor fines total £291m, but the bank will be cutting its bonus pool by £450m in response to the Libor affair, said Sky.

Barclays' move looks particularly harsh compared to other banks implicated in Libor fixing. Royal Bank of Scotland (RBS) is expected to cut its bonus pool by  £300m to help cover its £390m Libor fine. UBS was fined $1.5bn for Libor and is said to be cutting investment banking bonuses by $750m.

Barclays' harshness is likely to cause disgruntlement, especially in the US where ex-Lehman bankers are already said to be unhappy with new CEO Antony Jenkins. Sky said £290m of Barclays' bonus reductions are being taken from the 2012 bonus pool. £160m is being clawed back from previous years. Sky points out that Barclays bonus pool is still expected to be £1.8bn in total, however.

There are between 600 and 700 people at Barclays earning more than £1m according to the Financial Times. Most of them are in Barclays' investment bank. Were it not for the Libor scandal, there may have been plenty more.


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