Big bonuses for fat cats
FAT CAT bankers came under fire last night when it was revealed they were once again in line for huge bonuses after recording massive profits.
Both Barclays and HSBC posted joint pre-tax profits of almost £6billion, with Lloyds Banking Group and Royal Bank of Scotland also set to reveal their figures later this week.
The banking duo – which both avoided taxpayer support at the height of last autumn’s crisis – posted profits of nearly £3billion each, mainly due to strong investment banking.
But the profits mean thousands of City executives will once again receive huge payouts despite the banking sector taking the economy to the brink of collapse last year.
Critics are also angry the banks are paying bonuses while the amount they have been putting back into the economy through lending has dropped.
Shadow Chancellor George Osborne said: “The banks should watch they don’t misuse Government support. It is designed to facilitate lending, not mega pay deals.”
Barclays chief executive John Varley stressed that bonuses would not be paid until the end of the year and that the bank would consider recent guidance and “behave responsibly”.
But Liberal Democrat Treasury spokesman Vince Cable said: “The money should be going to help small businesses, not lining the bankers’ pockets.”
He said the Financial Services Authority should force banks to publish details of pay and bonuses policies and “the package details of anyone who earns more than the Prime Minister”.
Bank of England Governor Mervyn King said bonuses were “a form of compensation which rewards gamblers if they win – but with no loss if they lose”.
