Royal Bank of Scotland insists bonuses will be paid
The Royal Bank of Scotland has today confirmed a loss of £1 billion at the halfway stage for 2009 and sought to clarify the situation regarding staff bonuses. Despite the fact that the bank made a loss in the first half there are many large "guaranteed" bonuses to be paid even though the bank is 70% owned by UK taxpayers and being propped up by the UK government in other ways.
If the UK authorities are unable to control the bonuses paid at a bank which is 70% owned by taxpayers, what chance do they have of dictating to the banks which are wholly owned by institutions and individual shareholders?
As we have mentioned on numerous occasions, the UK government and the UK regulators seem determined to control future remuneration packages in the banking sector although ultimately despite all the hustle and bustle this is proving nigh on impossible. Are the politicians telling taxpayers what they want to hear or are they really adamant that they can and will control the UK banking sector in the future?
So far there has been little response from the government with regards to results announced by Lloyds bank and Royal Bank of Scotland or indeed the general trend of the UK banking sector. Surely the authorities need to put the record straight with regards to future regulation and future remuneration?
Share this..
Related stories
How would life be under an EU regulator?
As the EU looks to grab more and more power from the London financial markets many people are now starting to wonder exactly what life would be like under an EU regulator. The fact that people are actually beginning to wonder about the future should start alarm bells ringing within the UK government, the UK financial sector and UK regulators.
As we have mentioned in one of our earli...
Rising Bank Penalties causes concern over Consumer Awareness
Customers of banks within the UK have seen a sharp rise in the amount they are paying out in penalties for accidental mistakes. The total figure over the past 12 months has risen to £650m paid in penalties, according to research conducted by finance management service, OnTrees. Almost two million consumers have incurred fees ‘accidentally’, by making late payments or using an unauthorised...
Read MoreHow do the interest rates in the financial sector compare to base rates?
With UK business base rates at 0.5%, and likely to stay there for the foreseeable future, now would seem like a perfect opportunity to compare interest rates across the financial sector against UK base rates. So who is benefiting from reduced base rates?
In the mortgage sector, the situation with regards to two-year and three-year mortgage rates shows that there is currently a margi...
Emerging economies 'catching US'
The economies of emerging nations are gaining ground on the US in terms of competitiveness, a new report has stated.Today's annual study from business thinktank IMD says the world economy has "never been as dynamic", with none of the 55 economies in its World Competitiveness Yearbook in recession.But the Lausanne-based organisation warns that the growth in developing economies could force the US a...
Read MoreCBI in renewed call for UK interest rate cuts
In the aftermath of the fall of the famous Lehman Brothers and the immediate affect which it has had on the money markets - not unlike the impact the market felt as the credit crunch began - the CBI has called on the Bank of England to throw caution to the wind and reduce UK interest rates. The confederation believes that unless action is taken before the end of 2008 the UK will encounter a prolo...
Read More