Sources inside the investment division of RBS have confirmed to The Slog that they received “generous” pay rises as well as bonuses as a result of the ‘restructuring rescue plan’ that led to the bank losing a cool eight billion quid last year.
This comes on the same day that Andrew Tyrie, the chairman of the Treasury select committee, said banks’ approach to pay “does not come close” to meeting proposals from the Parliamentary Commission on Banking Standards, which he chaired.
In turn, it comes four days after Ross McEwan said in a keynote speech, “The Bank, and of course the British taxpayer, paid a very heavy price for the self-serving decisions that were made at RBS in the past. For me it is very simple. As an organisation we must remember and then never forget that RBS exists to help our customers, to support them, and to make their lives easier. We cannot do this if our customers do not trust us. We are the least trusted company in the least trusted sector of the economy. That must change. So the goal of my plan is very simple. We have to be a bank that earns your trust”.
Except that he couldn’t be trusted to tell us that – quite soon after saying “free banking might have to end” – he had approved the giving of pay rises. This is the context of having lost all £46bn of the money we’ve pumped in since 2008. We can now guesstimate that around £2bn of that went in bonuses….and rises. And of course, quite a bit of it went in setting aside monies to pay SFO fines and private legal actions resulting from, um, fraud…of which McEwan says he can “find no trace”.
Er….why pay the fines if you can’t find the evidence to justify them?
With impeccable timing, today’s Telegraph notes that RSA shares are “a good buy” because the post-Goodwin architect of the RBS jerry-built financial mess Stephen Hester is now at the helm there. It helps to laugh, I find. But not for long.
This is just one of a number of googlies that are going to catch Chancellor George Osborne slap bang leg before wicket soon enough. The Squeaky One has peaked too early, and his premature ejaculations are now about to start looking distinctly onanist.
First we had Mark Canuck at the Bank of England suggesting that Help to Buy might be ‘inappropriate’, and conducive to the creation of a housing bubble.
Now it has emerged in the last 24 hours that ‘onerous affordability’ rules are to be imposed on wannabe mortgage holders by the financial regulator in April, in a move that financial bosses are predicting could ‘kill housing recovery stone-dead’ from next month. Ipswich Building Society CEO Paul Winter told the Telegraph that there would be a shortage of finance available in April, May and June, caused almost entirely by the new rules. Socio-economically, this has to be a good thing. Politically for Gideon, however, it’s a blow.
Other things are upcoming in a series format that could blow the gaff bigtime on the Draper’s Big Scam. We have already seen how Britain’s “well under way” recovery suddenly developed a flat battery in the latest figures. Today the FTSE 100 was down 2% by midday as Ukraine jitters began to take hold. (I suspect this may have influenced Downing Street in its decision to tell the world this morning that under no circumstances will it be invading Ukraine, dear me, but how utterly pompous and delusional that sounded).
In May come the European elections, at which – we can be reasonably certain – Nigel Mirage and his Moonies will give both main Parties a serious drubbing. At that time too will come a potential double-header of Greek and Ukrianian bailout requirements….with yet more British citizens wondering whyTF we’re in this khazi called the EU.
Earlier at The Slog: Why Ukraine could easily turn into an econo-political Fukushima
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