RBS Boss Stephen Hester Hands Back Bonus

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RBS Boss Stephen Hester has confirmed he won't take his bonus for 2012 in light of the IT scandal.

He also said that management at RBS (LSE: RBS.L - news) would be accountable on bonuses because of the recent technical problems.

The IT glitch delayed payments to NatWest, Royal Bank of Scotland and Ulster Bank accounts, leaving some customers short of cash and even forcing one man to spend a weekend in prison when his bail money was not available.

A letter has revealed the problems originated in Edinburgh and not in India as previously thought.

Mr Hester said today that the problems were caused by issues dating back to before he arrived at RBS in 2008, but taking a bonus would be "inappropriate".

A spokeswoman for RBS Group said there was no figure for the bonus Mr Hester would have received, as it was more a case of him not being considered for one.

Mr Hester has previously been forced to waive his £963,000 all-shares bonus amid public outrage over bankers' pay.

RBS paid £785m in bonuses last year, including £390m for its 17,000 investment bankers. While the total pot is 43% lower than the previous year, it followed a period in which the bank announced thousands of job cuts.

Meanwhile, RBS is among several lenders being investigated by the Financial Services Authority over trying to influence the Libor (London interbank offered rate) and Euribor interbank lending rates to boost profits.

The watchdog said that it has found "serious failings" in the sale of complex interest rate hedging products to some SMEs and has reached agreement with Barclays (LSE: BARC.L - news) , HSBC (LSE: HSBA.L - news) , Lloyds and RBS to provide appropriate compensation where mis-selling occurred.

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