RBS CEO: ‘Banks reliant on taxpayer bail outs should pay higher taxes’

30 September 2010

Financial institutions which have relied on tax payer bail outs to survive during the financial crisis should pay higher taxes, the Royal Bank of Scotland’s (RBS) chief executive officer has claimed.

The comments made by Stephen Hester, CEO of the firm, at a conference in London were reported by the Scottish Herald.

He told attendees at the event that many of the banks which struggled through the global credit crisis reliant on public money owe a debt of gratitude to the UK tax payer, the newspaper reported.

Mr Hester, who was quoted by the news provider, said: “You just have to look at underlying banks’ financial strength ratings and their actual ratings and its undeniable that there remains a level of ‘sovereign halo’ applicable to banks.”

“That there should be a bit of extra taxation seems to be pretty hard to resist,” he added.

His comments followed news of further redundancies among RBS’ workforce. which were unveiled by the bank earlier in the week.

Another 500 posts among back-office divisions are to be cut after RBS announced that 3,500 support positions were also to given up earlier in the year.

By Jim Ottewill

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