[Iran Press TV Latest] The state-owned Royal Bank of Scotland (RBS), which was bailed-out with billions of pounds of taxpayer's money amid the global financial crisis, is likely to cause public anger by announcing a bid to hand out record bonuses. The high-risk investment banking arm is the UK's biggest government-controlled bank, where even an average employees is likely to take home GBP 240,000 annually, the Sunday Times reported.
The banks, which had to be rescued from collapse by the Treasury last October with an initial injection of GBP 20 billion, is now planning to bestow bonuses of 1 to 5 million pounds each upon its top traders and senior staff.
The payouts, at 66% above those awarded last year, would set a record for the bank, topping its highest bonus record set during the 2007 financial boom.
The revelation, which could put the bank in the line of fire from UK Financial Investments, comes less than two weeks after Business Secretary Lord Mandelson warned the RBS that it risked alienating the public by offering "exorbitant" bonuses.
"To have a punt on numbers is without any foundation whatsoever...No decisions have been taken on bonuses." Bloomberg quoted Michael Strachan, an Edinburgh-based spokesman for the RBS, as saying.
UK Financial Investments oversees taxpayers' investments in banks and would have to approve the payments.
While many households in the UK still suffer in the aftermaths of the financial crisis, the huge profiteering of in-debt bankers has raised concern of an imminent public outcry.
The RBS is expected to lobby hard to be allowed to make the payments, delving deep into its GBP 4 billion payment and bonus pot.