Royal Bank of Scotland (RBS) is set to press ahead with an estimated bonus pool of around £500m, despite claims by the group’s finance director that the industry has wasted money on remuneration.
The group, which is 84 per cent owned by the taxpayer, was one of the targets that Sir Mervyn King had in mind when he said last week that banks need to trim bonuses and dividends. The Bank of England governor warned that the “exceptionally threatening environment” caused by the eurozone crisis meant that banks needed to concentrate on hoarding cash.
We may be the majority shareholder in the bank, but it seems no-one - either in Government or in the plethora of regulatory agencies - can bring it to heel.
Note: the value of RBS shares has dwindled to 21.63 pence, compared to about 50 pence when the taxpayer invested all that money in the ailing bank.