RBS

Chancellor George Osborne has ordered the Treasury to draw up plans for a mass give-away of RBS shares to taxpayers by the next election in 2015, according to reports.

Managers are setting up portfolios for a pull-back in equity markets, looking at put options and moving more defensive as several indicators post sell signals.

Stephen Hester, chief executive of Royal Bank of Scotland(RBS), mounted a strong defence of his bonus package to MPs yesterday, despite mounting criticism of the bank's involvement in the LIBOR scandal under his watch.

Royal Bank of Scotland's chief executive is expected to receive a £780k bonus next month, despite the recent LIBOR scandal which has tarnished its reputation.

RBS has been fined a collective £391m for its role in the LIBOR scandal, with the FSA's investigation finding over 200 "inappropriate" rate submissions.

RBS has confirmed it faces not only a monetary fine but also other unspecified sanctions in relation to the LIBOR fixing scandal.

British banks that fail to separate their retail banking from their riskier investment banking arms may be forcibly dismantled, Chancellor George Osborne will say later today.

Former Tory Chancellor Nigel Lawson has called for George Osborne to fully nationalise RBS and criticised the bank's so-called "star" traders.

RBS shares have continued a pullback that began in earnest earlier this week as the FTSE moved back below 6,300 in morning trading.

Royal Bank of Scotland (RBS) is to pay up to £250m in bonuses to its investment banking division, including to those implicated in the LIBOR-rigging scandal.