UK Politics

Liberal Democratic Party: Part nationalised banks are for lending, not bonuses says Cable

Press Release   •   Feb 26, 2010 09:49 GMT

“RBS rewarding individual bankers is like a football team paying their striker for scoring when they’ve just been relegated," said the Liberal Democrat Shadow Chancellor.

Commenting on the announcement of RBS’ losses and bonus pool, Vince Cable said:

“It’s hard to understand why £1.3bn is being paid out in bonuses when RBS continues to make losses.

“RBS rewarding individual bankers is like a football team paying their striker for scoring when they’ve just been relegated.  

“While it is good news that RBS is meeting its mortgage lending target, its lending to business has fallen.

“The Government has to get a grip and explain how it will exercise its 84% shareholding in RBS to benefit the taxpayer. At present we are seeing very little. Part nationalised banks are for lending, not bonuses.

“Stephen Hester seems to think that his only goal is to push up the share price. But RBS has made a commitment to support recovery by ensuring that viable businesses are not starved of capital.  If RBS doesn’t lend to businesses they will go bust and people will lose their jobs.

“The lending agreements for 2011 need to be more concrete, long term and better policed.”