Banks Have Failed to Learn Their Lesson

Summary


Amid all the foolish decisions made by Gordon Brown's Government in recent weeks, none is more likely to rile the taxpayer than the one to give a potential pay package of pounds9.6 million to Stephen Hester, the new boss of the Royal Bank of Scotland. If ministers thought they could sneak through the deal unnoticed while people were focused on the scandal of MPs' expenses, the election of a new Commons Speaker and the announcement of an inquiry into the Iraq War, they were sorely mistaken.

How can such a pay deal have been allowed for the head of what is Britain's most broken bank? Before anyone forgets, RBS is now 70 per cent owned by the taxpayer, having been bailed out to the tune of several hundred billions.

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Extract


Banks Have Failed to Learn Their Lesson

It received tens of billions of pounds under the "special liquidity scheme" - the mortgage rescue package operated by the Bank of England - and will receive a further pounds300 billion under an insurance plan for bad loans.

Any effort to pretend that RBS is anything other than a nationalised bank, in all but name, is absu...

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