Royal Bank of Scotland may have to further shrink its investment bank should an investigation into interest rate rigging show cultural failings persist in the business, according to sources.
The bank is expected to be fined up to £500 million for its role in the manipulation of the London interbank offered rate (Libor) and other global benchmark rates.
John Hourican, head of the investment bank, and Peter Nielsen, head of markets, may be asked to leave as early as next week.
Chief executive Stephen Hester is expected to survive but has warned of a “miserable day” for RBS when the punishments are meted out.
The revelations are likely to re-ignite calls for the part-nationalised bank to focus on its domestic market.
