BIGGEST BAIL-OUT EVER FOR BANKS; TAXPAYERS TO PAY [pounds sterling]40BILLION INTO RBS AND LLOYDS; BOSSES AGREE TO CUT BONUSES TO CURB PUBLIC FURY.Byline: Hugo Duncan Hugo Duncan is a singer and BBC broadcaster from Strabane, Co Tyrone, Northern Ireland. His nickname is "The wee man from Strabane". He has two music programmes on BBC Radio in Northern Ireland; Country Afternoon with Hugo Duncan and Joe Murphy THE biggest bail-out yet of British banks was agreed today when almost [pounds sterling]40billion of public money was put up to support Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba and Lloyds. Taxpayers will plough as much as [pounds sterling]33.5 billion into RBS RBS Royal Bank of Scotland RBS Role Based Security RBS Rollback Segment RBS Rare Book School (University of Virginia) RBS Rural Business Cooperative Service RBS Ribosome Binding Site (genetics) and [pounds sterling]5.7billion into Lloyds. The sums exceed the [pounds sterling]37billion put into the banks a year ago to stop them collapsing at the height of the financial crisis. Bosses at the two banks agreed to a mini clampdown clamp·down n. An imposing of restrictions or controls: "Advertisers and broadcasters would raise howls of protest against any strong clampdown" Wall Street Journal. on bonuses in an attempt to assuage as·suage tr.v. as·suaged, as·suag·ing, as·suag·es 1. To make (something burdensome or painful) less intense or severe: assuage her grief. See Synonyms at relieve. 2. public anger that such amounts are being poured in just as the City bonuses culture is being revived. Cash bonuses will only be allowed for staff earning below [pounds sterling]39,000, and capped at [pounds sterling]2,000. Higher paid executives will get bonuses in shares, with no limit. Executive directors will not be allowed to touch their shares until 2012. At the same time, both banks were ordered to sell branches and businesses to comply with EU rules on state aid. Chancellor Alistair Darling said: "I believe what we have got here is better structured and a better deal for the taxpayer. Together with the competition measures it does represent a major step forward along what has been a very difficult road." But shadow chancellor George Osborne This article is on the politician. For the musician, see George W. Osborne. George Gideon Oliver Osborne (born 23 May, 1971 in London) is a Conservative politician in the United Kingdom, and has been Member of Parliament for Tatton since 2001. said it was a "bigger bail-out than the original one," adding: "Yet still there is no guarantee that it will get credit flowing in the economy." Today's moves leave the public owning a stake of 84.4 per cent in RBS and 43 per cent in Lloyds. The Treasury said that was an improvement on the expectations in March when the public share in Lloyds seemed set to soar to 62 per cent. Lloyds managed to raise [pounds sterling]21 billion privately to avoid being drawn deeper into public ownership. But the state share in RBS goes up from 70 per cent to 84, with the taxpayer pumping in [pounds sterling]25.5billion while setting aside [pounds sterling]8billion in case the bank runs into further trouble in future. The Treasury said [pounds sterling]10billion of the money put up today would only be used in the event of a severe meltdown meltdown Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb . RBS is selling 318 RBS-branded branches in England and Wales England and Wales are both constituent countries of the United Kingdom, that together share a single legal system: English law. Legislatively, England and Wales are treated as a single unit (see State (law)) for the conflict of laws. , its NatWest branches in Scotland and the Churchill and Direct Line insurance arm. Lloyds will offload 600 branches in Scotland and its Cheltenham & Gloucester branches. Editorial Comment Page 14 Bosses to forfeit big bonuses |
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