Cameron pledges RBS bonus action

11 November 2011

The UK government is set to intervene over the Royal Bank of Scotland's (RBS) plans to award its investment bankers a bonus pot of a reported £500 million ($796 million).

Prime minister David Cameron has pledged that the Conservative-Liberal Democrat alliance will have words with officials at RBS - an institution that is 83 per cent owned by the state - regarding this matter.

Last week, the financier revealed it would be cutting more jobs than was previously expected, but it has since announced that hundreds of its traders and professionals will be rewarded with a nine-figure bonus pot.

Mr Cameron has stated that he does not think this policy is acceptable in the present climate.

"The British government is a seriously large shareholder in RBS and we will be making our views known," he added.

Recently, the financier admitted the ongoing eurozone crisis would make the fourth quarter of 2011 a tough period for the UK's economy.

By Gary Cooper

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