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| Chancellor sets RBS bonus limits | Chancellor sets RBS bonus limits |
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| Chancellor Alistair Darling has announced that the government is limiting bonuses paid out to staff by the Royal Bank of Scotland (RBS). | Chancellor Alistair Darling has announced that the government is limiting bonuses paid out to staff by the Royal Bank of Scotland (RBS). |
| "We want to see a cultural change where short-term bonuses are replaced with incentives for the long term," he said. | "We want to see a cultural change where short-term bonuses are replaced with incentives for the long term," he said. |
| Mr Darling said bonuses at RBS would be cut from the £2.5bn paid last year to £340m. There will be "no reward for people who have failed," he added. | Mr Darling said bonuses at RBS would be cut from the £2.5bn paid last year to £340m. There will be "no reward for people who have failed," he added. |
| And bonuses will no longer be paid in cash, but in shares. | And bonuses will no longer be paid in cash, but in shares. |
| The bank will pay "the minimum it can with regard to its legal obligations," the chancellor said, referring to the fact that some employees are contractually obliged to receive bonuses. | |
| "Of course they've looked after the low paid," he added. | |
| Last weekend, Mr Darling defended the government's handling of the banking crisis in light of expected record losses at HBOS. | Last weekend, Mr Darling defended the government's handling of the banking crisis in light of expected record losses at HBOS. |
| Lloyds Banking Group - which completed its takeover of HBOS last month - said its subsidiary will report losses of nearly £11bn for 2008. | Lloyds Banking Group - which completed its takeover of HBOS last month - said its subsidiary will report losses of nearly £11bn for 2008. |