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Lloyds bonuses 'will be limited' | Lloyds bonuses 'will be limited' |
(41 minutes later) | |
Limits are to be agreed on staff bonuses at the new Lloyds Banking Group, Gordon Brown has confirmed. | Limits are to be agreed on staff bonuses at the new Lloyds Banking Group, Gordon Brown has confirmed. |
The government was now working "to agree a fair package for staff" at the bank, the prime minister wrote in an article for the Times newspaper. | The government was now working "to agree a fair package for staff" at the bank, the prime minister wrote in an article for the Times newspaper. |
His comments come a day after the chancellor outlined bonus limits at Royal Bank of Scotland (RBS). | His comments come a day after the chancellor outlined bonus limits at Royal Bank of Scotland (RBS). |
The government has a near 70% stake in RBS and owns 43% of Lloyds, which was formed after Lloyds TSB bought HBOS. | The government has a near 70% stake in RBS and owns 43% of Lloyds, which was formed after Lloyds TSB bought HBOS. |
Culture change | Culture change |
Mr Brown reiterated the government's opinion that as a condition for the banks being bailed out with taxpayers' money, they had "to end the short-term bonus culture". | Mr Brown reiterated the government's opinion that as a condition for the banks being bailed out with taxpayers' money, they had "to end the short-term bonus culture". |
But he insisted that the aim was not to undermine banking staff. | But he insisted that the aim was not to undermine banking staff. |
"None of these actions is designed to punish or scapegoat City workers," he said. | "None of these actions is designed to punish or scapegoat City workers," he said. |
"But we must also be clear that the old excesses, the one-way bets, have to be consigned to the past." | "But we must also be clear that the old excesses, the one-way bets, have to be consigned to the past." |
Chancellor Alistair Darling said on Tuesday that bonuses at RBS would be cut from the £2.5bn paid last year to £340m, which includes £175m for investment bankers and £165m for lower-paid staff. | |
In addition, bonuses to "essential staff" will be paid in stages from 2010 and will no longer be paid in cash, but in corporate bonds. | |
Reports suggest the value of those bonds could be in the region of £600m, but RBS says the value has not yet been agreed. |