The Royal Bank of Scotland (RBS) stands on the brink of declaring a £12 billion loss for last year. Notwithstanding this, the bank’s government appointed Chief Executive, Stephen Hester is expected to receive a £1.6 million bonus. The move conflicts with the prevailing desperation that exists amongst the UK taxpayer community, which has been compelled to bail the UK banking industry out of its present crisis through money market intervention and direct share purchases.
This is not the first instance of the investment banking process choosing a lucrative path, irrespective of the difficulty that seems to be reigning over the conventional banking sector. The present move by the RBS, setting aside a bonus pool exceeding £1 billion in the face of its £12 billion downturn, has baffled many in the UK.
The buzz about possible bonus releases within the RBS has been stated and disputed for a long time now. And now with this latest development, it is estimated that its directors may be asked to sacrifice their privileges for last year, to accommodate the massive bonus package.
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