Saturday, 21 February 2009

Too clever

It is going to take more than a few earnest announcements from politicians to stop bankers from sucking the cash out of failing banks. From today's Times...

Royal Bank of Scotland is offering immediate payments to staff who are owed bonuses despite promising the Government that it would not give them cash payouts.

The Times has learnt that RBS, which is 68 per cent owned by taxpayers after a £20 billion government bailout, is offering its staff loans against the bonuses that they are owed but which have been deferred until 2010 under a deal with the Government.

RBS had lobbied hard to be allowed to pay a cash element of the bonuses and critics will see the loan scheme as a way to get around the Government’s refusal to allow it to do so. The bank, which will pay out about £1 billion of bonuses, had agreed to defer about £650 million of that after intense political criticism.

5 comments:

Mitch said...

sneaky eh? this was bound to happen gordon often leaves loopholes you could drive blairs ego through.

Anonymous said...

"RBS had lobbied hard to be allowed to pay a cash element of the bonuses and critics will see the loan scheme as a way to get around the Government’s refusal to allow it to do so"

Gordon Brown is always asking the banks to lend ...

The Economic Voice said...

A deferred bonus is still a fucking bonus!!

Anonymous said...

I agree with the other anon commentator. After all this moaning about how banks won't lend the government can't really complain about this.

The Economic Voice, what discount would you put on a bonus from RBS to be paid in a years time? I certainly wouldn't be going out and spending that money!

look said...
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