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| Version 3 | Version 4 |
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| Brown 'very angry' about bonuses | Brown 'very angry' about bonuses |
| (about 1 hour later) | |
| Prime Minister Gordon Brown is "very angry" about proposed bank bonuses and wants bankers to consider waiving their right to them, his spokesman has said. | Prime Minister Gordon Brown is "very angry" about proposed bank bonuses and wants bankers to consider waiving their right to them, his spokesman has said. |
| He said executives should "consider whether they actually receive" bonuses even if legally entitled to them. | He said executives should "consider whether they actually receive" bonuses even if legally entitled to them. |
| Earlier Mr Brown said - amid reports the taxpayer-saved RBS group is to pay out £1bn in bonuses - the culture of rewarding failure was being ended. | Earlier Mr Brown said - amid reports the taxpayer-saved RBS group is to pay out £1bn in bonuses - the culture of rewarding failure was being ended. |
| Conservative leader David Cameron said ministers were "asleep on the job". | Conservative leader David Cameron said ministers were "asleep on the job". |
| And the Liberal Democrats have described ministers' response to the issue of bankers' bonuses as "pathetic". | And the Liberal Democrats have described ministers' response to the issue of bankers' bonuses as "pathetic". |
| Speaking in London on Monday morning Mr Brown said: "We are leading the world in sweeping away the old short term bonus culture of the past and replacing it with a determination that there are no rewards for failure and rewards only for long-term success." | Speaking in London on Monday morning Mr Brown said: "We are leading the world in sweeping away the old short term bonus culture of the past and replacing it with a determination that there are no rewards for failure and rewards only for long-term success." |
| "In the future there must be rewards for success - but long-term sustainable success and not just short-term gains." | "In the future there must be rewards for success - but long-term sustainable success and not just short-term gains." |
| And Treasury minister Yvette Cooper said any contractual or legal obligations on banks to pay bonuses at a time when they were making huge losses must be "challenged". | And Treasury minister Yvette Cooper said any contractual or legal obligations on banks to pay bonuses at a time when they were making huge losses must be "challenged". |
| 'Moral responsibility' | 'Moral responsibility' |
| "We have made very clear that as major shareholders in these banks we won't accept bonuses for failure," she told the BBC. "These do need to be curtailed." | "We have made very clear that as major shareholders in these banks we won't accept bonuses for failure," she told the BBC. "These do need to be curtailed." |
| Ms Cooper said there was "a lot to be said" for going down the same route as the US and banning future cash bonuses for bank staff but said bankers should also look to their own actions. Senior executives need to take responsibility and consider whether they should be taking bonuses. Yvette Cooper, Chief Secretary to the Treasury class="" href="/1/hi/business/7878769.stm">Q&A: Bank bonuses | |
| "I think there is a moral responsibility on some of these bankers, even if they are legally entitled to take bonuses, at a time when the bank is only still standing because of government intervention and why I think there is an important issue of needing to restore trust in the city, senior executives need to take responsibility and consider whether they should be taking bonuses." | "I think there is a moral responsibility on some of these bankers, even if they are legally entitled to take bonuses, at a time when the bank is only still standing because of government intervention and why I think there is an important issue of needing to restore trust in the city, senior executives need to take responsibility and consider whether they should be taking bonuses." |
| Chancellor Alistair Darling said on Sunday the RBS Group should not reward staff with huge bonuses, but says he cannot rule out pay-outs for some bank staff. | Chancellor Alistair Darling said on Sunday the RBS Group should not reward staff with huge bonuses, but says he cannot rule out pay-outs for some bank staff. |
| The Treasury has ordered a probe into general UK bank management to be led by ex-City regulator Sir David Walker. | The Treasury has ordered a probe into general UK bank management to be led by ex-City regulator Sir David Walker. |
| The timescale of the Walker review has fuelled complaints from opposition parties that the Treasury response was too slow. | The timescale of the Walker review has fuelled complaints from opposition parties that the Treasury response was too slow. |
| 'Outrageous' | 'Outrageous' |
| Tory leader David Cameron said the review was "much too late in coming" and that he had been warning about the dangers of excessive bonuses for many months. | Tory leader David Cameron said the review was "much too late in coming" and that he had been warning about the dangers of excessive bonuses for many months. |
| "It does appear that the government has been completely asleep at the wheel," he said. | |
| For banks now owned by the taxpayer, future bonuses should consist of shares not cash and only be paid out when much of the investment made by the government had been repaid. | For banks now owned by the taxpayer, future bonuses should consist of shares not cash and only be paid out when much of the investment made by the government had been repaid. |
| Executives at RBS needed to "recognise the fact" that the bank would have not survived in its current form if the government had not stepped in, he added. | Executives at RBS needed to "recognise the fact" that the bank would have not survived in its current form if the government had not stepped in, he added. |
| Cameron: Government 'asleep on the job' on bank bonuses. | |
| "As the principal shareholder, you are able to say what is and what is not acceptable." | "As the principal shareholder, you are able to say what is and what is not acceptable." |
| "It is outrageous for taxpayers to put £20bn into banks to see a billion of that used to pay out bonuses," he said. | "It is outrageous for taxpayers to put £20bn into banks to see a billion of that used to pay out bonuses," he said. |
| The Lib Dems said that instead of dealing "decisively" with the problem, the government was "playing for time" in order not to upset the banking industry. | The Lib Dems said that instead of dealing "decisively" with the problem, the government was "playing for time" in order not to upset the banking industry. |
| "You don't need a review to answer the simple question: should senior bankers receive bonuses? The answer is no," said the party's leader Nick Clegg. | "You don't need a review to answer the simple question: should senior bankers receive bonuses? The answer is no," said the party's leader Nick Clegg. |
| The independent investigation will also look at the pay and bonuses of top executives in the industry. | The independent investigation will also look at the pay and bonuses of top executives in the industry. |
| 'Absolute minimum' | 'Absolute minimum' |
| Under the terms of October's bank-bailout, no board directors at partly state-owned firms will receive any cash bonuses this year. | Under the terms of October's bank-bailout, no board directors at partly state-owned firms will receive any cash bonuses this year. |
| But the scale of the reported pay-out at RBS, in which the government holds a 68% stake, has caused an outcry and led to calls for an across the board ban on bank bonuses. | But the scale of the reported pay-out at RBS, in which the government holds a 68% stake, has caused an outcry and led to calls for an across the board ban on bank bonuses. |
| RBS has experienced a year of turmoil, and has already flagged up that it will post a huge loss for the past 12 months. | RBS has experienced a year of turmoil, and has already flagged up that it will post a huge loss for the past 12 months. |
| RBS confirmed it was talking to the government about bonuses, adding that it had contractual obligations to many executives but was trying to do the right thing at the same time. | RBS confirmed it was talking to the government about bonuses, adding that it had contractual obligations to many executives but was trying to do the right thing at the same time. |
| The bank has said that any bonuses will be dramatically reduced and there will be "no reward for failure in those bits of its business where the losses were concentrated". | The bank has said that any bonuses will be dramatically reduced and there will be "no reward for failure in those bits of its business where the losses were concentrated". |
| Former deputy prime minister John Prescott has said that as shareholders, the public demands that bankers give up their bonuses. | Former deputy prime minister John Prescott has said that as shareholders, the public demands that bankers give up their bonuses. |
| Last week US President Barack Obama announced a $500,000 (£355,000) limit on executive pay at US firms that needed substantial fresh government aid. | Last week US President Barack Obama announced a $500,000 (£355,000) limit on executive pay at US firms that needed substantial fresh government aid. |
| The move follows widespread public anger over the levels of pay on Wall Street, but is not expected to be applied retrospectively. | The move follows widespread public anger over the levels of pay on Wall Street, but is not expected to be applied retrospectively. |