RBS and Lloyds £30 Billion Handout and Bonus Caps

A touch over 12 months on from their original bail-out, RBS (LON:RBS) and Lloyds (LON:LLOY) said today that they will not pay cash bonuses to any staff earning over £39,000.

Alistair Darling said that Government plans to pump another £30 billion of public money into banks and it represents a better deal for the taxpayer. For this to be done Royal Bank of Scotland and Lloyds Banking Group has agreed to dramatic caps on banker’s bonuses as the price for receiving billions more in taxpayer aid.

RBS have agreed to take another £25.5bn and Lloyds £5.7bn from the Government. Both banks have been forced by the European Union to sell some of their businesses, which may help the reshape of high street banking.

Alistair Darling, the Chancellor, insisted that the deal, which comes after months of tense negotiations with the European Union and the banks, represents a good deal for the taxpayer. Lloyds, is also raising £13.5bn in the biggest cash call in UK corporate history. The fundraising will allow it to exit the Government’s Asset Protection Scheme, but the Government will keep its stake at 43pc in Lloyds after handing over another £5.7bn.

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