Osborne tells RBS to pay U.S. fines from bonuses

Feb 02, 2013, 6:55 PM EST
Chancellor George Osborne leaves 11 Downing Street on January 7, 2013 in London, England.
Getty Images/Dan Kitwood

U.K. finance minister George Osborne has told Royal Bank of Scotland that it must meet fines likely to be imposed by U.S. authorities in connection with the Libor scandal–estimated to be in the region of $475 million–from its bankers' past, present and future bonuses. The bank, which is 82% taxpayer-owned, will learn the extent of its fines next week in a settlement with U.S. regulators and the U.K.'s Financial Services Authority. Osborne has faced criticism from British taxpayers that they will be footing the bill for offences committed when the bank was still owned by private shareholders.