Royal Bank of Scotland to announce £7 billion loss for 2009
Royal Bank of Scotland is on the verge of announcing a loss of £7 billion for 2009 while at the same time looking for Treasury approval regarding a £1.3 billion bonus pot which will be paid to the company's investment bankers. The company, despite being 84% owned by UK taxpayers, appears determined to push through these massive bonus payments at a time when public anger is mounting at the ever growing national debt and consumer debt in the country.
Over the last few weeks we have seen some "softer" headlines regarding Royal Bank of Scotland with a suggestion the company would scale back future staff payments to below the sector average. However, at the same time we hear that the company is determined to push through a £1.3 billion bonus pot for despite losses of £7 billion. The everyday person in the street will find it difficult to appreciate how you can pay a bonus to staff at a company which lost £7 billion in 2009, nearly went under and is effectively controlled by UK taxpayers.
Even some hard-nosed financiers in the city find it difficult to appreciate that a company effectively saved by the taxpayer can still look to pay bonuses as if it were back in the boom times.
Share this..
Related stories
BSkyB places 10.4% stake in ITV
As expected, BSkyB has today confirmed the placing of 404.4 million shares in ITV at a price of 48.5p each. This now brings the company's shareholding in ITV down to 7.5%, a figure which the Competition Commission is happy with, although it does crystallise a £348 million loss on the 10.4% share sale. The company has confirmed that the residual 7.5% stake will be held in the medium term for inves...
Read MoreCredit Rating Agencies Under Severe Pressure
As we continue the blame game on both sides of the Atlantic it seems that the credit rating agencies are next under the hammer with EU and US officials looking at possible prosecutions. The likes of Standard and Poors, Fitch and Moody's are being blamed for a failure to warn investors that the ratings on some of their investments were in trouble.
It is alleged that after the cred...
Is Inflation Set To Motor Higher?
As the threat of widespread industrial action in the UK moves ever closer there are real fears that even a concerted effort by the Bank of England will not be enough to curb the growing threat of inflation. The rate is forecast to rise to 4% this year and that was before the raft of strike actions announced by unions across the UK. The recent fuel delivery strike saw an inflation busting 14% pay...
Read MoreSo Mr Brown, Will The Taxpayer Lose Money On Northern Rock?
Those close to the Northern Rock situation have been very vocal over the last couple of weeks with regards to a statement made by Gordon Brown on the 18th February, soon after the troubled Northern Rock bank was nationalised. In his press conference in the aftermath of the move he insisted that the move was not a bad one and could see tax payer actually make a profit as and when the bank was sold...
Read MoreGovernment spends £37,000 on Pension Wise branding
30/04/2015 The UK government has spent £37,000 on developing a “brand identity” for the guidance service it created in the wake of the new pensions reforms, Pension Wise. Pension Wise was set up by the government as a free, impartial retirement guidance service that's open to everyone seeking information about how they can turn their pension fund into a retirement income.The website wa...
Read More