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UK banking sector ignore calls to curb bonuses

As we have covered in one of our earlier post, while the Royal Bank of Scotland directors have agreed to curb any bonuses for those at board level there would appear to be substantial bonuses on the way for other members of staff. In a direct response to opposition party calls for legal curbs on bonuses and pay packages for those banks rescued by the taxpayer, the sector as a whole is set to ignore these calls and operate on the basis of "business as usual".

While there is obviously a need to retain and attract the best members of staff to any business, taxpayers will be dismayed to see their money flowing straight out if the banks into the pockets of employees who could otherwise have been unemployed. No other industry in the UK is receiving the same care and attention as the banking sector and it would appear that money targeted at increasing financial ratios and supporting asset values is being used to pay bonuses to staff.

However, the UK government has little room for manoeuvre when you consider the enormous pay packages some of their banking representatives are receiving with for example the Northern Rock. While publicly backing the approach of Barack Obama in legally restricting pay rises and bonuses in companies bailed out by the government, it would appear that behind-the-scenes little has changed in the UK.

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