Govt agrees RBS plans to hand out £1.3bn in bonuses

Considering we the tax payer own the bank, shouldn't we get a say on this? 8O :x

The Government is set to give its consent to Royal Bank of Scotland's plans to hand out £1.3bn in bonuses to investment bankers, Sky sources say.

UKFI, the body which handles the taxpayer's stake in Britain's bailed-out banks, is set to write to the bank today to give its blessing to the proposal, it is understood.

Sky News City editor Mark Kleinman said: "Of course these plans are controversial because RBS is majority owned by the taxpayer.

"But what this will signal, if indeed this communication does take place today, is that RBS has won a significant battle in being able to run itself on a commercial basis rather than being simply an arm of the Government.

"It's clearly important for RBS, given that it reports its annual results tomorrow (Thursday), that this confirmation from UKFI takes place before 7 o' clock tomorrow morning."
It's high time that the banks were broken up so the is a clear devision between, high street, business and investment.

I have no problem with the bonuses, people pay tax on them after all, but when joe public has to prop you up to keep your job, and then you still get a bonus, it sucks.
The UK govt has an investment to protect.

Don't pay bonuses - staff leave.

A bank without staff makes no profit.

No profit means share price tanks.

Share price tanks = not return on investment - govt loses money.
JoeCivvie said:
Don't pay bonuses - staff leave.
The ones who ran a bank into the ground will leave to take up what exactly? I wonder how many other institutions there are who're looking for that sort of talent. The jobs market for bankers isn't looking particularly favourable at the moment.

The banks are looking to pay off the government as quickly as possible so they can get back to business as usual as quickly as possible. Notice that the arrangement is that they pay off the government as quickly as possible. If they do this by squeezing the public as hard as possible, through repossessions, etc., then so be it. Apparently.

If the government gets its money back quickly, it only winds up having to spend it again keeping roofs over the heads of the dispossessed. It may very well have a financial investment to protect, but it has a far more important one in the fabric of society to protect as well. I for one have had enough of governments screwing over the populace for the sake of short-term interests.

Similar threads

New Posts

Latest Threads