News/ Info Rbs bankers set to share billions in bonuses

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Bankers at Royal Bank of Scotland, which is largely government owned, are set to share £20 billion worth of bonuses, with the most senior figures in line for six-figure payouts.

While RBS says that it has yet to decide on its remuneration policy, The Times reported this morning that the bank's plans had received the tacit approval of UK Financial Investments, the body the government set up to manage its extensive portfolio of British banks.

The bank has already said it has a freeze on bonuses at board level, but this does not mean it will hold back on payouts for its star traders and bankers.

The reports that RBS is to reward its bankers so generously will infuriate shareholders who have seen the price of their holdings drop; from its peak in March 2007 of 567p, RBS was this morning trading at 20.1p. The government now holds around 70% of the group.

citywire.co.uk
 

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Amazing! Bring a company to its knees, get cash handouts from the government (which means you and me) to stay afloat, then get paid loads of money for doing so.

I'm in the wrong job. I always thought a bonus was a reward for success. :confused:
 

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Wankers, sorry, slip of the keyboard, I mean bankers do not live on the same planet as we do. I just read that one of the result of citi group CEO tightening his belt is doing away with his company jet. Just imaging a jet, paid for, fueled and private hanger at an aiport just for one man when he needs to travel?
 

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A mutinous backlash is growing in Britain this weekend against banks' plans to carry on paying staff millions in bonuses as if the credit crunch had never happened. The Independent on Sunday understands that the Government intends to try to head off the rising tide of resentment against bankers by saying that it will be an "active shareholder" in the institutions receiving significant bailout cash, and say no to "excessive payments".

But the Chancellor, Alistair Darling, will stop short of an absolute veto on bonuses or a salary cap at taxpayer-rescued banks such as Northern Rock, Royal Bank of Scotland and Lloyds Banking Group. Treasury sources say he will also try to "coax" other banks to rein in pay and bonus packages. He will set up a review "which will examine how banks are managed. I expect the review to make recommendations about the effectiveness of risk-management by banks' boards, including how pay affects risk-taking."

Independent.co.uk
 

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Barclays halts directors' bonuses as profits fall

Barclays, Britain's third-largest lender, said that it would waive bonuses for its executive directors as it reported a 14 per cent fall in full-year pre-tax profits, announced £8.1 billion of writedowns and scrapped its dividend.

The bank reported a 2008 profit of £6.1 billion, ahead of analysts' forecasts but down 14 per cent on the previous year.

Pre-tax profit fell from £7.1 billion in 2007 but ahead of an average forecast of £5.8 billion.

The bank said that as a result of a "heavily negative†return on its shares in 2008 — its shares have fallen 76 per cent year on year — and the scrapping of its final dividend, "executive directors will receive no bonuses in 2008â€.

However, is still paying about £600 million in bonuses below board level.

Barclays released its results as the dispute over bank bonuses continuted to rage.

Yesterday, Alistair Darling announced a review of how the British banking sector was run after an outcry over the level of bonuses that lenders, such as Royal Bank of Scotland, were proposing to pay after being bailed out by the taxpayer.

However, the review has drawn criticism because it is not scheduled to be concluded by the end of the year, while this morning, The Times revealed that the bankers who are managing the Government's £37 billion bailout of the banking sector will themselves receive bonuses.

Unlike RBS and Lloyds Banking Group, Barclays decided against taking government funds to boost its balance sheet, instead opting for funding from overseas investors.


timesonline.co.uk
 

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Unlike RBS and Lloyds Banking Group, Barclays decided against taking government funds to boost its balance sheet, instead opting for funding from overseas investors.
At least Barclays haven't had to receive taxpayers' handouts, unlike some of the others.
 

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RBS to sell off fifth of business

The Royal Bank of Scotland (RBS) is to announce plans this week to sell off at least a fifth of its business, including much of its toxic debt.

New chief executive Stephen Hester will place the parts he wants to sell into a separate, non-core division.

The move, which aims to protect the profitable core of the bank, is expected to hit jobs - with RBS staff braced for cuts of between 10% and 20%.

The government has a stake of 68% in RBS after a £20bn bail-out last year.

With its annual results out on Thursday, the lender needs to persuade its shareholders, notably the British public, it has a credible recovery plan for the next three to five years.

BBCNews
 
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