BONUS BUSTERS; Banks agree to give up payouts for extra pounds 30bn.Byline: CLINTON MANNING 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 Lloyds agreed to clamp down on staff bonuses yesterday - in return for pounds 30billion more of taxpayers' cash. They will not give cash payouts to workers earning more than pounds 39,000 and any rewards to wheeler dealers Wheeler Dealers is a television show on the Discovery network, fronted by Mike Brewer and mechanic Edd China. The show's premise is that Brewer and China are on a mission to save repairable enthusiast vehicles, by repairing or otherwise improving an example of a particular will have to be made in shares. These stocks will be handed out in instalments over three years and will be clawed back if profits later unravel. As part of the deal, Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba and Lloyds are also being forced to sell big chunks of their empires including 900 branches - a move union leaders claim risks 25,000 jobs. City minister Paul Myners said: "We don't want to demonise Verb 1. demonise - make into a demon; "Power had demonized him" demonize alter, change, modify - cause to change; make different; cause a transformation; "The advent of the automobile may have altered the growth pattern of the city"; "The discussion has people in banking but we are determined to bear down on remuneration at the top." There will be no dividend payouts for RBS and Lloyds' three million shareholders who have already seen the value of their investments collapse. And directors have agreed not to take any bonuses until 2012. The deal is in line with principles drawn up at the G20 summit which all the banks signed up to in September. RBS chief Stephen Hester said the deal would make it tougher to hire top staff but said it was a price worth paying. Yet he remains unconvinced shutting 318 branches, as revealed in the Mirror yesterday, will boost competition. He said: "Banking is a big-is-beautiful business - you need the economies of scale to compete." Lloyds is being forced to sell nearly 600 branches. Commenting on the bonus 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. , chief Eric Daniels added: "There is a feeling we must take a long-term view and not take excessive risks and rewards should reflect this." Rob MacGregor, of Unite, blasted: "We cannot allow a situation where 25,000 branch workers pay the price for the banking executives' recklessness. The Government has saved the banks, now it is time to save bank workers." THE BANK SHAKE-UP RBS Taxpayers' stake rises to 84%, up from 74% 318 branches to be soldincluding RBS network inEngland and Wales Wales, Welsh Cymru, western peninsula and political division (principality) of Great Britain (1991 pop. 2,798,200), 8,016 sq mi (20,761 sq km), west of England; politically united with England since 1536. The capital is Cardiff. , NatWest inScotland, RBS Insurance andthe card payment GlobalMerchant Services No cash bonuses in 2009 tostaff earning more thanpounds 39,000, but could be deferredand paid in form of shares Will pay pounds 700m a year to be in Government Asset Protection Scheme Taxpayers' stakeremains at 43.5% More than 600 branches will be sold over the next four years, including TSB TSB TPS (Thermal Protection System) Sample Box TSB Technical Service Bulletin TSB Transportation Safety Board of Canada TSB Telecommunication Standardization Bureau TSB Trustee Savings Bank TSB Telecommunications Systems Bulletin , , Cheltenham & Gloucester, Intelligent Finance No cash bonuses in 2009 tostaff earning more thanpounds 39,000, but could be deferredand paid in form of shares Will raise pounds 21bn frompounds 13.5bn rights issue andpounds 7.5bn debt swap Debt swap A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Also called a debt-equity swap. Both banks will raise mortgage and business lending by pounds 39bn WHAT IT MEANS TO YOU: PAGE 37 |
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