Britain plans tough action to rein in what it regards as excessive bank bonuses, deputy prime minister Nick Clegg said, ahead of the annual round of payments to star investment bankers.
"It is the Liberal Democrats who have led the debate on clamping down on bankers' bonuses. We must be just as tough
this year in the bonus season that is coming up as we were last year, if not more so," Mr Clegg, leader of the Liberal
Democrats, told BBC Radio 4 today.
Britain owns 83 per cent of Royal Bank of Scotland and 40 per cent of Lloyds Banking Group since bailing them out. The Lib Dems are the junior coalition partner.
Prime minister David Cameron said in November it was not acceptable for RBS to earmark a reported £500 million
(€605 million) for 2010 bonuses. That total was little more than half of what the bank paid out for 2009.
Analysts expect bank bonuses to fall nearly 40 per cent, reflecting falling revenues following the euro zone debt crisis.
Reuters
