RBS: no rewards for failure

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Last Modified: 17 Feb 2009
By: Gary Gibbon

RBS cash bonuses are down 90 per cent on last year, to £175m, putting the pressure on Lloyds to follow suit. Gary Gibbon reports.

The Royal Bank of Scotland, which is now largely owned by the government, announced the cut shortly after the chancellor, Alistair Darling, insisted bonuses would be slashed to "the absolute legal minimum".

Mr Darling said he wanted to see a cultural change within the bank, although the Tories called it "too little, too late".

It will increase the pressure on Lloyds, the other bank bailed out by the taxpayer, to follow suit.