RBS allocates £3.1bn to cover fund against legal and compensation claims

Royal Bank of Scotland (RBS) set aside a further £3.1bn pounds (€3.75bn) to cover legal and compensation claims as the British government struggles to recoup the cost of bailing out the lender.

Eight top executives, including Chris Sullivan, head of the corporate unit, and Les Matheson, acting head of the consumer division, won’t now receive bonuses for 2013, Edinburgh-based RBS said statement yesterday.

Chief executive Ross McEwan already waived his.