Myners angry at banks as bonus row escalates
CITY minister Lord Myners yesterday expressed his anger at large banking bonuses, as speculation around future compensation at UK banks threatened to cause the government further embarrassment.
Speaking on the BBC’s Andrew Marr show, Myners said: “We are simply not going to tolerate high levels of remuneration which are not justified and earned. The nation is angry and I’m angry.”
He added that investment banks may be charging clients too much in fees, in a further sign that the government is preparing a clamp-down on the sector ahead of the pre-Budget report (PBR) in November.
Myners’ comments came as City analysts predicted Barclays is on course to post record annual profits of over £10bn, fuelling talk of bumper bonuses early next year. Another analyst forecast that Royal Bank of Scotland, which is 70 per cent owned by the taxpayer, will award its biggest earners up to £5m each in total compensation this year, having put aside £1.8bn in the first half to cover staff pay and bonuses.
An RBS spokeswoman said bonuses had not yet been agreed and the figures were “without foundation”.