RBS investment arm chief, John Hourican to step down

John Hourican, head of the Royal Bank of Scotland's investment arm will step down over the Libor rate-rigging scandal – and be forced to return up to £7 million in bonuses.

He would quit at the end of the month in a bid to satisfy demand for the sack of a top head, from politicians and regulators.

Hourican, the state-backed bank's most highly paid employee, would be required to give up £4 million in share options he was due to receive from previous years.

According to Mail Online which quoted unnamed sources at the bank, RBS would dock up to £7million in total, as Hourican would also have to give up his bonus for last year.

Though the figure has not yet been disclosed, Hourican received a £2.5 million payout in 2011.

He would still receive a pay-off worth £700,000, however, from the contractual entitlement to a year's salary, which he retains.