RBS told to reduce bonus pot by £500 million
Royal Bank of Scotland directors have been told they need to reduce the estimated £1.5 billion bonus pot for 2009 by £500 million. This would appear to be the behind-the-scenes deal which the Treasury has agreed with Royal Bank of Scotland directors as a way for both parties to keep face and to maintain the Royal Bank of Scotland board of directors as it is. So what next?
The very fact that bankers at the Royal Bank of Scotland will be sharing a £1 billion bonus pot as we approach the end of 2009 is not a thought which will go down well with UK voters. When you consider that mortgage liquidity is still low, businesses are being starved of capital, banks have taken hundreds of billions of pounds of UK taxpayers money and now they are looking to reward themselves, it does stick in the throat somewhat.
When you also throw in the fact that UK taxpayers have a significant stake in Royal Bank of Scotland which is currently losing billions of pounds you really do start to wonder who is in charge of the UK economy and who is in charge of the UK banking sector in particular.
Share this..
Related stories
One person's rubbish is another person's gold
A number of surveys throughout the UK have found that many people tend to hoard large amounts of unused and potentially useless items. However, rather than dispose of these via the rubbish bin, more people are looking towards the likes of eBay where "one person's rubbish is another person's gold" and there is the potential to raise significant money from your old "rubbish".
While as...
Sainsbury's set to take advantage of the downturn
Sainsbury's has today released plans for a significant expansion of the company's operations which will see store space increased by 15% before March 2011. In a bold move the Sainsbury's management have decided to use problems for some of their competitors to grab a larger share of the UK grocery market. Today's announcement was followed by a £432 million fund-raising exercise which will be compl...
Read MoreDid Mervyn King frighten the money markets unduly?
It seems in many ways that whatever Mervyn King, the governor of the Bank of England, cannot win. This week we saw Mervyn King issue a rather downbeat statement on the UK economy and the revelation that he had fought for an increase in the quantitative easing fund by a further £75 billion and not the £50 billion which had been announced. While many analysts respect Mervyn King's opinion on the e...
Read MoreWho should reimburse ID theft victims?
As a report by Which? magazine confirms that one in five victims of ID theft in the UK are not reimbursed in full the banking industry is starting to move against those caught up in the often complicated web of ID theft deceit. While the banks claim that customers should be more vigilant and careful with their personal information, customers claim that it is the fault of banks which stand accused...
Read MoreUK budget back in the black
The public sector purse showed a surplus in April as a growth in value-added tax (VAT) payments helped shift the UK's finances back into the black during the first month of the new fiscal year.Figures released by the Office for National Statistics (ONS) showed a surplus of £0.2 billion on the current budget, compared to a deficit of £0.9 billion in April 2006.Meanwhile public sector net borrowin...
Read More