Saturday, November 12, 2011

I will rein in RBS and stop £500million bonuses, vows Cameron....hahaha...Let's remember this Joke When the Bonus headlines appear

David Cameron yesterday vowed to stop state-owned bank RBS from lavishing £500million in bonuses on its staff this year.

The Prime Minister said the Government could and would ensure that the pot for pay and perks is much smaller.

RBS – which is 83 per cent owned by the taxpayer – has suffered a collapse in profits over the past three months.

Its revenues plunged to £112million between July and September – compared with £589million over the same quarter last year.

Yet this dramatic fall is not reflected in the enormous pay pool from which its salaries and bonuses are funded.

There is just under £2billion in the pool – only marginally lower than the £2.14billion it contained last year.

Insiders expect about £500million of it to be paid out in bonuses this year – with more than £1million going to some investment bankers.

There is ongoing public fury at the way bankers have continued to rake in huge salaries and end-of-year bonuses, while the taxpayers who bailed out their banks three years ago are suffering pay freezes and public spending cuts.

Mr Cameron said that the Government would have a ‘very big influence’ on the level of bonuses paid out by RBS this year. Read More