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    Daniel Schäfer and Sam Fleming in London November 14, Print this page Five banks at the heart of the forex rate rigging probe are preparing to claw back millions of dollars in bonuses from traders as the City seeks to shore up its reputation in the wake of the latest forex rate com to hit the banking industry.

    This would be the first time that banks have applied this draconian measure on such a large scale. Under European rules, they have the power to take this step, but in practice they forex rate com largely restricted themselves to withholding as yet unpaid bonuses.

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    Forex rate com Wheatleythe chief executive of the FCA, one of the regulators which imposed the forex penalties, is likely to welcome these moves. Senior officials have made clear that misconduct should affect the award of incentives.

    RBS has already suspended the vesting of bonuses for 19 traders as a precaution.

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    Other penalties could be looming for forex traders involved in the scandal. George Osborne, forex rate com chancellor, pledged on Friday to provide the SFO with all the funding it needs to make its own inquiries into the forex scandal.

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    In a letter to the Attorney General, he said the Treasury would provide any extra cash needed for the probe. The Treasury has not forex rate com down previous requests for blockbuster funding.