MAIL ONLINE: Royal Bank of Scotland directors were accused of holding taxpayers to ransom last night over plans to pay huge bonuses.
The board has threatened to resign en masse if the Treasury blocks the payments.
The row is over an estimated £1.5billion bonus pool for staff at the investment arm of the bank, which is largely owned by the public.
The pool is around 50 per cent bigger than last year and would give 20,000 bankers the equivalent of three times the national average salary each.
The Treasury has demanded a veto, following the taxpayers' £45billion bailout of the Edinburgh institution, but board members say their lawyers tell them they would have to resign if they lost the power to set pay levels.
It is an astonishing challenge to the Government, whose stake in the bank is set to rise to 84 per cent in the coming weeks.
Liberal Democrat spokesman Vince Cable said: 'I would welcome their resignations as they cannot hold the taxpayer to ransom. It's absolutely right that the government should impose bonus discipline on this bank.'
'As a state-run bank, the Government must finally take control and ensure that both its pay and lending practices are in the public interest.' Held to ransom by the bankers: Bosses at RBS (Yes, YOU own it) threaten to quit if they can't dole out huge bonuses >>> Simon Duke | Wednesday, December 02, 2009
THE TELEGRAPH: Lord Myners: 5,000 bankers earn more than £1m: At least 5,000 bankers will earn more than £1 million this year, according to the Government's City minister Lord Myners. >>> Harry Wallop, Consumer Affairs Editor | Wednesday, December 02, 2009
