Friday, December 04, 2009
A fresh row over City bonuses is set to engulf ministers after it emerged last night that 200 executives at Lloyds, the partly state-owned bank, are set to receive one-off payments worth up to 80 per cent of their annual salaries.
They will receive the money for integrating Lloyds with HBOS, which has led to more than 11,000 job losses at the combined bank since January.
It comes amid signs that the Government will not stop Royal Bank of Scotland, which is 70 per cent owned by the State, from paying massive bonuses to 20,000 investment bankers.
The Treasury had indicated earlier this week that it would veto a £1.5 billion payout to executives, a 50 per cent rise on last year.
But Gordon Brown and Lord Mandelson stepped back from confrontation after the RBS board threatened to resign.'