Stephen Hester Drops £1m RBS Bonus
Labour leader Ed Miliband says the threat of a Commons vote to condemn Stephen Hester's bonus was the driving force behind his decision to waive it. Report by Adam Sich.

EU: We'll Make UK Cut Bank Bonuses
THE INDEPENDENT: Exclusive: Europe threatens to crack down on City's excessive pay

The European Commission is considering tough new proposals to curb the pay and bonuses that banks can hand out to staff working across the European Union.

The plans, which are likely to go further than those proposed so far in the UK, would meet significant opposition from the City of London, which claims cutting benefit packages would result in an exodus of talent to Asia and America.

But the new restrictions could not be blocked by the Government if a majority of other European countries vote in favour of them. The proposal by Michel Barnier, the EU Commissioner in charge of financial services, emerged as G20 leaders meeting in Cannes failed to produce concrete plans to tackle the eurozone's sovereign debt crisis. » | OLIVER WRIGHT | Saturday, November 05, 2011

Banks Given Go-ahead to Pay Unlimited Bonuses
THE GUARDIAN: Ministers cave in to City and reject calls to tackle highest earners as No 10 seeks face-saving deal

Britain's banks were given the go-ahead tonight to pay unlimited bonuses, drawing to a close a two-year political battle to rein in the City.

After months in which a series of government ministers of all parties have threatened a toughening in the stance over City bonuses, Downing Street said the government did not intend to intervene in the pay of the UK's top bankers.

Ministers are instead hoping for a face-saving deal in which the banks agree to lending targets and improve the way they disclose their pay deals. One of the options being discussed is releasing information on the five highest paid individuals at each bank.

"We've made a broad statement which is about the need to see some restraint and some responsibility from the banks, but we are not going to set bonus pools for individual banks," the prime minister's spokesman said. >>> Patrick Wintour, Jill Treanor and Allegra Stratton | Monday, January 10, 2011

THE INDEPENDENT: Tough talk on bank bonuses comes to nought: The Government owns 83 per cent of RBS. So why does it claim to be powerless to halt another round of enormous bank bonuses? >>> James Moore, Deputy Business Editor | Tuesday, January 11, 2011

Big City Bonuses Are Back
MAIL Online: City banks are preparing to lavish record bonuses on staff less than a year after bringing the world economy to the brink of meltdown.

Many high-flying traders and dealmakers are looking forward to ' mindblowing' payouts on a par with the rewards handed out at the height of the banking boom in 2007.

This is despite many of the banks only being able to turn a profit because they have been bailed out with taxpayers' money.

Wall Street giant Goldman Sachs is expected to confirm next week that it will pay an average of almost £400,000 in pay and bonuses to each of its 5,500 London-based staff - a total of £2.2billion.

Its profits are soaring on the back of the $6.2billion it received from the U.S. taxpayer last year.

Royal Bank of Scotland recently revealed chief executive Stephen Hester was in line for a £9.7million pay package if he brings the bailed-out bank's share price up to 70p.

Another bailed- out financial giant, Citigroup, is raising basic pay for many of its investment bankers and traders by up to 50 per cent, to make up for the loss in bonus pay.

Nationalised U.S. insurance firm AIG is planning to pay millions of dollars more in bonuses to dozens of top bosses across the world.

Last year it paid out more than £100million despite being rescued by the U.S. government after racking up £60billion in losses from reckless bets on toxic debt.

Credit Suisse, Deutsche Bank, JP Morgan, Morgan Stanley and Barclays are also planning major rewards.

This is despite their actions triggering a recession which is expected to cost a million Britons their jobs.

The return of 'business as usual' to the banking sector makes a mockery of the Government's claim to have stamped out the culture of greed and reckless risk taking in the banking industry. Big City bonuses are back! Less than a year after banks took billions in taxpayer-funded bailouts... >>> Simon Duke | Saturday, July 11, 2009