Lloyds Banking Group is to announce that it intends to "claw back" bonuses from as many as 10 senior bankers because of the £3.2bn losses that the bailed-out bank suffered after the payouts were awarded a year ago.
Between 40% and 50% of the bonus pot is thought to be at risk. Details were still being finalised on Sunday night and the figure could drop as low as 25% – which may not satisfy some critics who will question why any bonuses should be paid out at all after the bank took the losses to cover the misselling of payment protection insurance (PPI).
Among those facing the consequences of the adjustment of the bonus pot caused by the PPI scandal are the former chief executive Eric Daniels and his closest lieutenants, some of whom have left the bank since his departure a year ago.
Just the tip of the iceberg. When the mortgage losses come in will the same happen?