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.
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