The Chancellor has insisted Royal Bank of Scotland (RBS) bankers, not the taxpayer, must pay the fines handed out over the LIBOR fixing scandal.
The Guardian reports George Osborne is forcing RBS to cut its bankers' pay to ensure the taxpayer is not left to pick up the cost of the estimated £500m penalties issued over the scandal.
Osborne said he had made his views clear to the management of the bank, which is majority owned by the government, in an attempt to diffuse public anger about the proportion of the fine which will be paid to US regulators.
"When it comes to RBS, I am clear that the bill for any US fine related to this investigation should on this occasion be paid for by the bankers, and not the taxpayer," the Guardian reports Osborne as saying.
The Financial Services Authority fined the bank about £90m, with US regulates levying four times that amount.
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