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[February 01, 2014]
COMPANIES: Postscript Carney extends Scots a line of credit: Losses of pounds 8bn at RBS? That's worth a bonus
(Observer (UK) Via Acquire Media NewsEdge) Down here in agenda's regular Banks Behaving Badly slot comes news from Royal Bank of Scotland, which looks like it's sleepwalking into a new executive pay row even as fresh legal bills and mis-selling scandals put the bailed-out bank on track to report pounds 8bn in losses for 2013.
While no formal indication about bonuses has yet been made to UK Financial Investments, the body that looks after taxpayers' 81% stake in RBS, it was reported last week that the RBS pay pot could be about pounds 500m - down on last year's pounds 800m, but still controversial.
Chairman Sir Philip Hampton insisted RBS had to keep paying competitively - as he spoke at a hastily convened conference call caused by an unscheduled trading statement in which RBS revealed it would incur an extra pounds 3bn of losses for conduct relating to the US sub-prime mortgage crisis and for mis-selling.
That, of course, pretty well rules out a bonus for the chancellor George Osborne, who said there was little chance of selling off any of our 81%.
Captions: Hampton: important to pay competitively.
(c) 2014 Guardian Newspapers Limited.
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