Former Royal Bank of Scotland executive to head Bank of Cyprus

Former Royal Bank of Scotland executive to head Bank of Cyprus

John Hourican, who quit RBS after it was fined for Libor rigging, now has job of restructuring troubled Cypriot institution

Jill Treanor      

theguardian.com, Tuesday 22 October 2013 18.18 EDT          

http://www.theguardian.com/business/2013/oct/22/former-rbs-banker-cyprus-bank

The Royal Bank of Scotland banker who quit in the wake of the bank's fine for rigging Libor has a new job as head of troubled Bank of Cyprus.

John Hourican, the former head of investment banking at RBS, was not implicated in the rate-rigging scandal which led to a £390m fine for the bailed-out bank in February, but he left to demonstrate responsibility.

The 43-year-old has the task of restructuring Bank of Cyprus, which was the first bank in the eurozone to take a slice of customers' savings as part of the international €10bn (£8.5bn) bailout of the island.

"The board of Bank of Cyprus believes this appointment is a key step in restructuring and developing operations of the bank to benefit shareholders, clients and the economy of Cyprus," the bank said, according to Reuters.

At an appearance before the Treasury select committee after the RBS Libor fine, Hourican said he had told colleagues "they should not waste my death" and should clean up the culture of the bank.

He left with a £700,000 payout but left behind £5m in share bonuses. "I will take the ultimate responsibility," Hourican said in February.

Bank of Cyprus has also taken on some of the assets of Cyprus's second largest bank, Popular. Local reports said the Cypriot bank had a shortlist of four candidates for the top job at the bank which lost €2.2bn in 2012.

Royal Bank of Scotland Group plc

Royal Bank of Scotland Group plc is a subsidiary of RBS America.

Note: Lawrence K. Fish was the chairman for RBS America, and is an honorary trustee at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank), and the Committee for Economic Development.

George Soros is the chairman for the Foundation to Promote Open Society, and founder & chairman for the Open Society Foundations.

Open Society Foundations was a funder for the Atlantic Council of the United States (think tank).

Ellen Alemany is a trustee at the Committee for Economic Development, and the CEO for RBS America.

Stuart E. Eizenstat is a trustee at the Committee for Economic Development, a director at the Atlantic Council of the United States (think tank), and was the U.S. ambassador for the European Union.

C. Boyden Gray is a director at the Atlantic Council of the United States (think tank), and was the U.S. ambassador for the European Union.

Cyprus is a member state of the European Union.

Central Bank of Cyprus is the central bank for Cyprus.