Mark Carney: Independent Scotland Must Sign Up for the Euro to Join the EU

Mark Carney has warned an independent Scotland would have
to sign up for the euro to join the EU

THE DAILY TELEGRAPH: The Bank of England Governor tells MSPs Scotland would have to join the euro in the "fullness of time".

The Bank of England’s Governor has warned an independent Scotland would be forced to promise to replace the pound with the euro if it wanted European Union membership.

In a major blow to Alex Salmond’s economic case for separation, Mark Carney told a Westminster inquiry that all new applicants to the EU have to join the single currency in the “fullness of time”.

He also told MPs it is a “distinct possibility” the Royal Bank of Scotland would have to move its headquarters south of the Border if there is a ‘yes’ vote in September’s independence referendum.

In triple blow to Alex Salmond’s economic case for independence, the Governor said a separate Scotland’s taxpayers would have to guarantee billions of pounds of deposits held by Scottish banks in England. » | Simon Johnson, Scottish Political Editor | Tuesday, March 11, 2014

Hester's £35.5m Pay Deal Fuels Renewed Anger Over Excess

THE INDEPENDENT ON SUNDAY: PM and Chancellor pressed to make urgent Commons statement as fairness issue reignites

Disclosure of the staggering figure amounts to political dynamite as the Prime Minister fought off suggestions that he should veto the near-£1m bonus, announced last week, for the boss of the taxpayer-owned RBS.

The extra bonus of £3.3m, revealed yesterday, would be on top of the £35.54m total remuneration package Mr Hester has received since joining RBS in 2008.

As the political storm surrounding executive pay at RBS grew, Ed Miliband called on David Cameron to intervene and urged RBS shareholders to block the £963,000 bonus at its AGM in April.
The Labour leader will call for Mr Cameron or George Osborne, the Chancellor, to make an urgent statement to the Commons tomorrow on the affair at a time when the Government is capping benefits for the poorest in society. It will cast doubt on the vow by the Business Secretary, Vince Cable, to tackle executive pay.

In a further ratcheting-up of pressure on Mr Hester, it also emerged that the RBS chairman, Sir Philip Hampton, has decided to waive his £1.4m shares bonus.

But the Prime Minister, who earlier this year made great play of calling for Sir Fred Goodwin to be stripped of his knighthood for presiding over failure at RBS, yesterday refused to bow to political pressure.

Apparently uncomfortable at being asked by journalists about the bonus following talks with the Afghan President, Hamid Karzai, at Chequers yesterday, Mr Cameron insisted that Mr Hester's bonus was "a matter for him" and that installing a new top team at the failed bank, which is 82 per cent owned by the taxpayer, would be even "more expensive" than it is now. » | Jane Merrick, Brian Brady, Mark Leftly, Emily Dugan | Sunday, January 29, 2012

Shares Bonanza For State-Owned Bank Chief
SKY NEWS: Royal Bank of Scotland boss Stephen Hester has been awarded an extra shares bonus worth up to £4.5m - taking his pay package for 2010 to a potential £7.7m.

The award - made under the bank's long-term incentive plan - is on top of a £2m annual bonus already confirmed by the group and Mr Hester's £1.2m salary.

He also stands to pick up six million shares as part of his 2011 maximum annual bonus.

Based on the current share price, these would be worth around £2.7m.

RBS has also revealed bonus payments for a raft of other executives at the bank, which is 83% owned by the taxpayer.

They include a £1.4m annual handout and potential £2.8m long-term incentive payout for finance boss Bruce Van Saun. >>> Graham Fitzgerald, Sky News Online | Tuesday, March 08, 2011

Big Bonus For Barclays Boss
The boss of Barclays, Bob Diamond, is to get a £6.5m bonus

Why Doesn’t Somebody Jail These SOBs?
TIMES ONLINE: The chairman of Britain’s biggest state-owned bank has defended multimillion-pound salaries for senior staff, despite widespread objections.

Sir Philip Hampton told the BBC Today programme that although banking sector remuneration was “astonishingly high”, staff at Royal Bank of Scotland would leave unless they were paid the market rate.

Politicians in each of the main parties have called for caps on bankers’ bonuses and Sir Philip — whose bank is 83 per cent owned by the taxpayer — has a difficult task in persuading the public that they are justified.

Sir Philip conceded that it was difficult to defend the pay gap between most people and some bank staff, but he told the BBC: “If we don’t pay our top people, they leave very quickly. Our top people are very much in demand and we have seen a significant loss of our top people.” RBS chief Sir Philip Hampton defends 'astonishingly high' bankers’ pay >>> Helen Power | Friday, April 30, 2010

MPs Blast 'Ridiculous' Pay in RBS Bonus Row
TIMES ONLINE: Politicians rounded today on Royal Bank of Scotland (RBS), the state-owned lender, over its decision to pay up to £1.7 billion in bonuses to bankers despite making a £3.6 billion loss during 2009.

The bank announced today that it would pay investments bankers from a £1.3 billion bonus pool while other staff would share in a £400 million reward.

George Osborne, the Shadow Chancellor, said that bankers’ pay had reached “ridiculous levels”, adding: “We have just got to look at the whole banking sector and try to bring this pay down.”

RBS’s loss for the 12 months to December 31 is less than the £5 billion expected and far below the £24.3 billion loss that RBS reported for 2008, a record for any British company.

But Vince Cable, the Liberal Democrat Treasury spokesman, said: “RBS rewarding individual bankers is like a football team paying their striker for scoring when they’ve just been relegated."

RBS is 84 per cent owned by the British taxpayer after receiving billions of pounds of rescue funds from the state during the recession to save it from collapse.

The UKFI, the body set up by the Government to manage the state’s investment in British banks, yesterday granted RBS permission to pay the bonuses. >>> Francesca Steele | Thursday, February 25, 2010

Stephen Hester Lines Up £1.6m RBS Bonus
RBS cheif executive Stephen Hester. Photograph: The Sunday Times
THE SUNDAY TIMES: Taxpayer banks set to report £12bn losses as bosses agonise over their big bonus payouts

STEPHEN HESTER, chief executive of Royal Bank of Scotland, is in line to collect a bonus of up to £1.6m despite the bank posting losses of several billion pounds.

Talks over the bumper payout are expected to reach a conclusion within days and could be announced alongside the bank’s results later this week.

Although the 49-year-old has yet to make a final decision on whether to accept the pay deal, it is understood that the conditions in his contract would permit a large payout.

The deal comes amid continuing controversy over bonuses at taxpayer-backed banks. RBS, 84%-owned by the state thanks to huge injections of government funds, will confirm this week that it is to pay out £1.32 billion in bonuses to its investment bankers.

Lloyds Banking Group is expected to award £200m to its staff and is on a collision course with investors over a bonus for Eric Daniels, its chief executive.

The payments come against a stark financial backdrop at the two banks. Lloyds and RBS are expected to post combined losses of about £12 billion this week, following enormous charges for bad debts. >>> Iain Dey and Dominic O’Connell | Sunday, February 21, 2010

Even My Parents Think I'm Overpaid, Admits RBS Chief Executive
THE GUARDIAN: But Stephen Hester tells MPs that although his bonus package could be worth up to £10m, it is currently worthless as shares in the state-controlled bank have failed to rise

Stephen Hester giving evidence to the Treasury select committee today. Photo: The Guardian
Stephen Hester, chief executive of Royal Bank of Scotland, admitted today that his parents believe he is paid too much as he stressed that his bonus package was currently worthless because the bank's shares had failed to rise.

Asked by the Treasury select committee of MPs whether he understood why the government wants to restrict bonuses at the state-controlled bank, Hester replied: "Yes".

He insisted that the bank did not yet know the size of the bonus pot that would be split between its 22,000 investment bankers. Hester also revealed that a "handful" of highly paid bankers would avoid the restriction placed on the bank not to pay cash bonuses to anyone earning more than £39,000 because of legal commitments made to them.

He told the MPs, who are also taking evidence from his counterparts at Lloyds Banking Group and Northern Rock, that his "biggest single business problem" was recruiting people who were concerned about the criticism they might encounter if they work for RBS.

Institutional investors had "raised concerns about our ability to keep and motivate good people".

The bank would not tell staff whether they will get a bonus and how large it would be until the end of February, he said.

The Treasury has a power to veto bonuses at the bank under the terms of insuring £282bn of troubled loans through the asset protection scheme (APS). Hester insisted no board directors have threatened to resign as a result of this restriction and insisted he wanted to pay "the minimum possible while keeping staff engaged".

Of his own pay deal, which is linked to the RBS share price but could be worth almost £10m over three years, Hester said: "If you ask my mother and father about my pay they'd say it was too high as well, so some people close to me have that view of bankers." >>> Jill Treanor | Tuesday, January 12, 2010

THE GUARDIAN – BUSINESS BLOG: Bank pay row reaches a crescendo: Banks are preparing to snub the politicians and begin a bumper bonus round later this week. First they have to brave a few final assaults: Obama's threatened tax in America and the House of Commons Treasury committee >>> Dan Roberts | Tuesday, January 12, 2010

Addicted to Bonuses: The Fat Slobs at RBS Just Can’t Get Enough
Bonus showdown: Stephen Hester, Chief Executive of Royal Bank of Scotland. Photo: Mail Online
MAIL ONLINE: Royal Bank of Scotland directors were accused of holding taxpayers to ransom last night over plans to pay huge bonuses.

The board has threatened to resign en masse if the Treasury blocks the payments.

The row is over an estimated £1.5billion bonus pool for staff at the investment arm of the bank, which is largely owned by the public.

The pool is around 50 per cent bigger than last year and would give 20,000 bankers the equivalent of three times the national average salary each.

The Treasury has demanded a veto, following the taxpayers' £45billion bailout of the Edinburgh institution, but board members say their lawyers tell them they would have to resign if they lost the power to set pay levels.

It is an astonishing challenge to the Government, whose stake in the bank is set to rise to 84 per cent in the coming weeks.

Liberal Democrat spokesman Vince Cable said: 'I would welcome their resignations as they cannot hold the taxpayer to ransom. It's absolutely right that the government should impose bonus discipline on this bank.'

'As a state-run bank, the Government must finally take control and ensure that both its pay and lending practices are in the public interest.' Held to ransom by the bankers: Bosses at RBS (Yes, YOU own it) threaten to quit if they can't dole out huge bonuses >>> Simon Duke | Wednesday, December 02, 2009

THE TELEGRAPH: Lord Myners: 5,000 bankers earn more than £1m: At least 5,000 bankers will earn more than £1 million this year, according to the Government's City minister Lord Myners. >>> Harry Wallop, Consumer Affairs Editor | Wednesday, December 02, 2009

City Bankers Are Already Lining Up for Bonuses Again
After helping the world get into its financial mess, bankers at HSBC are now lining up for renewed bonuses. Photo courtesy of MailOnline
MAIL Online: HSBC bankers are in line for bumper bonus payouts after an 'encouraging' jump in profits.

While the company's performance added impetus to a day of good economic news, the re-emergence of the City's discredited bonus system will be an embarrassment for Gordon Brown, who has promised to outlaw reckless behaviour in the Square Mile.

Taxpayer-controlled Royal Bank of Scotland has already started offering 'guaranteed' bonuses to traders in defiance of promises it made to rein in no-strings-attached rewards.

And Barclays is gearing up for massive payouts after profits rose 15 per cent in the first three months of 2009.

The culture of extravagant bonuses encouraged bankers to take ever bigger risks, laying the ground for the gravest financial crisis since the Great Depression of the 1930s. >>> By Simon Duke | Tuesday, May 12, 2009

Angry RBS Shareholders Vote against Sir Fred Goodwin's Pension
THE TELEGRAPH: Royal Bank of Scotland's shareholders have emphatically rejected the £700,003 annual pension awarded to former chief Sir Fred Goodwin at a tense meeting in Edinburgh.


About 90pc of the beleaguered bank's shareholders voted against its renumeration report, including UK Financial Investments, which manages the taxpayers' majority stake.

Sir Fred was fired in the Autumn as RBS was forced to go cap-in-hand to the taxpayer for billions as financial markets and the economy soured. Sir Philip Hampton, the bank's new chairman, said that the pension plan is legally stipulated by Sir Fred's contract but no "stone is being left unturned' to see if it can be overturned. >>> By Jamie Dunkley and Peter Taylor in Edinburgh | Friday, April 3, 2009

RBS: Sir Fred Goodwin 'Thinking About' Shredding His Pension
THE TELEGRAPH: Former Royal Bank of Scotland boss Sir Fred Goodwin - known as 'Fred the Shred' - is considering a "voluntary reduction" in his £703,000-a-year pension payout, the bank has confirmed.

Chairman Sir Philip Hampton said Sir Fred was thinking about the move, but said it was too soon to know what the outcome would be.

He said: "I've asked Sir Fred if he would consider a voluntary reduction and he's told me he's thinking about that."

The comments come ahead of the bank's annual general meeting in Edinburgh later on Friday, when angry shareholders are expected to vote down RBS's remuneration report in protest at Sir Fred's controversial pension payout.

RBS - now majority-owned by the taxpayer - also warned of more job losses in the UK and internationally as it said the 2,700 announced so far this year for the UK were "not the end of the story".

The embattled bank said it was still unclear how many redundancies would be made, but stressed it would do "all it can" to keep compulsory redundancies to a minimum.

The group is laying off staff as part of a plan to cut £2.5 billion from annual costs within the next three years. >>> | Friday, April 3, 2009

G20 Protests: Rioters Loot RBS as Demonstrations Turn Violent
THE TELEGRAPH: G20 summit protesters looted a City office of Royal Bank of Scotland this afternoon, as a largely peaceful demonstration spilled over into bloody violence in the centre of London.

G20 violence. RBS windows smashed.
A small number of demonstrators forced their way into the building on Threadneedle Street near the Bank of England after smashing windows and throwing smoke grenades.

Hundreds of protesters cheered as office equipment including a printer was carried out of the building – which is believed to have been empty – before riot police wielding batons managed to force the crowds back.

The rampage inside RBS will raise questions about the effectiveness of the £7.2 million security operation. The bailed-out bank was known to be a target of anti-capitalist groups in advance of the protests, but police efforts had concentrated on defending its headquarters on Bishopsgate in Liverpool Street, around half a mile away.

Twenty-three people were arrested as protesters clashed with police around the Bank of England, which was the focus of today's anti-capitalist and anarchist demonstrations. >>> | Wednesday, April 1, 2009

TELEGRAPH picture gallery: G20: Protests turn violent >>>

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>

Treasury Starts Legal Steps to 'Claw Back' Sir Fred Goodwin Pension Pot
TIMES ONLINE: Sir Fred Goodwin may be forced to give up some of his massive £650,000 pension if he refuses pleas to "do the decent thing" and surrender it voluntarily.

Alistair Darling, the Chancellor, today denied a suggestion from Sir Fred's successor at the Royal Bank of Scotland that the Government had known about the deal to top up the banker's pension pot when he left the ailing bank last year.

He also revealed that he had instructed a Treasury minister, Lord Myners, to contact Sir Fred and ask him voluntarily to give up some of his pension.

“I think people will find it very difficult to understand how you can get paid £650,000 a year for the rest of your life when just look at the state that RBS is in at the moment,” Mr Darling told BBC Radio 4. “You cannot justify these excesses, especially when you’ve got such a failure of this magnitude.” >>> Philip Webster, Political Editor, and Philippe Naughton | Thursday, February 26, 2009

BBC: RBS Reports Record Corporate Loss

Royal Bank of Scotland (RBS) has announced the largest annual loss in UK corporate history.

RBS, which had to be bailed out by the government last year, said that its 2008 loss totalled £24.1bn ($34.2bn).

It also said it would put £325bn of toxic assets into a scheme that offers insurance for any further losses.

RBS is under fire over the pension of former boss Sir Fred Goodwin and the chancellor said the government had asked him to forego some of it.

Speaking at a news conference, RBS chief executive Stephen Hester said the bank was "under no illusions" about the scale of the losses.

He added that it was important "to think about the past, to know what went wrong, to disclose it and to address those issues". >>> | Thursday, February 26, 2009

Watch BBC video: Gordon Brown has said 'nobody can support very extensive pension arangements' at this time. >>>

Watch BBC video: Liberal Democrat treasury spokesman Vince Cable has launched a scathing attack on the government's scheme to insure banks against big losses. >>>

Watch BBC video: Chancellor Alistair Darling has spoken about the huge pension awarded to former Royal Bank of Scotland (RBS) boss Sir Fred Goodwin.

RBS has come under fire, after it emerged Sir Fred, who retired at 50, is drawing a £650,000 a year pension.

Speaking in the Commons, Mr Darling said the government had no part in negotiating the agreement otherwise it would not have been approved. >>>

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>

Bailed-out Royal Bank of Scotland Bankers Set for Millions in Bonuses
TIMES ONLINE: RBS to reward staff in spite of losses

The troubled Royal Bank of Scotland, rescued with £20 billion of public money, is planning large bonuses for thousands of its City traders and senior bankers, The Times has learnt.

The proposed payments are expected to reach tens of millions of pounds — possibly hundreds of millions — with some star bankers in line for six-figure payouts.

UK Financial Investments (UKFI), the Treasury-run body that holds the Government’s RBS stake, is understood to have given its blessing in principle to limited payments, although it has yet to see the details. “There’s no blanket objection to bonuses, but they are subjecting them to intense scrutiny,” said one well-placed source. “The [bonus] numbers will be very large and very difficult for the general public to understand.” >>> Patrick Hosking, Banking and Finance Editor, and Philip Webster, Political Editor | Thursday, February 5, 2009

The Dawning of a New Dark Age (Paperback & Hardback) – Free delivery >>>