Royal Bank of Scotland’s £421 million bonuses for bankers, taxpayers’ money


Threat to RBS bankers' bonuses, cartoon

This cartoon by Cagle is called Threat to RBS bankers’ bonuses.

By Richard Bagley in Britain:

35bn losses, but RBS still hands out 421m bonuses

Friday 27th February 2015

TAXPAYER-BACKED RBS reported losses of £3.5 billion last year but said yesterday it still plans to hand out £421 million in bonuses in a move even its boss admitted was “outrageous.”

Thousands more staff are also set to go at the bank, which announced that it will hack back its investment banking.

Finance union Unite said it was “deeply concerned” at news of the “significant” fresh cuts. The bank has already laid off 30,000 workers since the state took an 80 per cent stake in 2008.

The closure plans will go ahead despite underlying profits at the bank hitting £3.5bn.

A £4bn “goodwill” write-down of assets relating to its US operation plunged RBS into the red overall.

Astonishingly even chief executive Ross McEwan admitted yesterday that people were “quite right” to see plans for bumper bonus payouts as “outrageous.”

He told BBC Radio 4: “To be quite honest they are right.”

But he added: “It’s not something I am going to change,” claiming that it was simply fair pay “for people to do these jobs.”

Mr McEwan will trouser a pay package worth £2.7m this year.

But thousands of low-paid support workers now face an uncertain future.

Unite national officer Rob MacGregor said: “Today’s announcement won’t leave the wealthy traders devastated and worried about how they pay their mortgages.

“It will be the worker in the back office earning £20,000 per year who now faces uncertainty about what the future holds.”

The union is seeking urgent talks with the bank to identify the intended victims of its plan and “a proper consultation period with Unite involving serious negotiations about how the business will be restructured,” said Mr MacGregor.

Chancellor George Osborne has already said that there are no plans for an immediate sell-off of the country’s shares in the bank.

RBS shares have not yet returned to the £4.55 level at which Britain shelled out in 2008, although they recently hit £4 for the first time in more than three years.

But Mr Osborne is slashing the state stake in Lloyds over coming months amid its expected return to multibillion-pound profits.

How the public has been left paying for RBS’s crimes: here.

CEO pay at 15 of the world’s major banks shot up by 17 percent last year, according to a survey conducted by Equilar and published by the Financial Times Friday: here.

16 thoughts on “Royal Bank of Scotland’s £421 million bonuses for bankers, taxpayers’ money

  1. Reminiscent of the Pharaoh dynasties of rulers, whom at the time of their reign, were God Men, these days the banking fraternity have all the trimmings of this type of dynasty without being God Men, but having a born to rule belief, the employees and all those outside the sacred circle are slaves, to be traded as pawns and are all part of the expendables, the trash of human fodder.

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  12. Saturday, 15 September 2018

    RBS AND CRIMINAL ACTIVITY

    ROYAL Bank of Scotland (RBS) chief executive Ross McEwan has been accused by MPs on the Treasury Select Committee of withholding information about an investigation into criminal activity within the bank. He had been giving evidence about the way the bank’s Global Restructuring Group (GRG) had treated small business companies (SMEs).

    The session related to a leaked regulatory report that found an ‘intentional, co-ordinated strategy’ to put RBS’s interests ahead of customers. McEwan had told the committee in January that there was not any criminality inside the bank.

    But in June, it was reported that Police Scotland was investigating allegations about a former employee, which MPs then asked him to clarify. McEwan said he had replied to the committee’s questions in ‘good faith’. But the MPs insist he has ‘withheld information of relevance and interest’.

    At the end of July, it was announced by the regulator, the Financial Conduct Authority, that no action will be taken against Royal Bank of Scotland and its senior managers over the activities of its controversial Global Restructuring Group (GRG), the regulator has said.

    The FCA said its powers were ‘very limited’ and that there were no ‘reasonable prospects of success’ when it came to action against senior managers.

    A review into the GRG turnaround unit published earlier this year found it did mistreat thousands of small firms.

    Some firms said they were pushed into bankruptcy and were stripped of their assets after they were transferred into the controversial division between 2008 and 2013.

    GRG was marketed as an expert service that helped struggling small businesses; instead it bankrupted them.

    Jonathan Reynolds MP, Shadow City Minister, commented, ‘Given how seriously the RBS-GRG scandal has damaged trust in banking, it is shocking that the CEO of RBS has chosen to conceal information like this from a select committee.

    ‘RBS should be doing everything it can to provide redress for customers whose lives have been devastated by the actions of GRG; instead it is choosing not to reveal key information.

    ‘This is why Labour has consistently called for a public, judge-led inquiry into GRG. An independent third party is the only way we can achieve proper transparency into the scandal and deliver justice for its victims. ‘Ten years on from the financial crisis, it is clear we still have a long way to go to rebuild trust in the sector

    https://wrp.org.uk/news/14669

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