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cashinmattress

Benefit Fraud? Immigrants? Chump Change... Bah

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The Royal Bank of Scotland (RBS) is facing shareholder discontent at its annual meeting over £607m staff bonuses.

Payouts by the 81% state-owned bank are likely to be discussed by investors after a "chastening" 2012 when it lost £5.2bn.

It agreed a £390m settlement for Libor rate-fixing, another £1.1bn for mis-selling provisions and a £175m IT fiasco drove losses deeper from £1.2bn in 2011.

But the bank will argue it is on a stronger footing and should be ready for a return to the private sector by next year.

Earlier this month, RBS swung out of the red with pre-tax profits of £826m for the first three months - its best performance since the third quarter of 2011.

Chief executive Stephen Hester said: "The clean-up of RBS can be accomplished under our own steam in the next year, year-and-a-half. I think we will be substantially done next year."

Shareholders will gather for the meeting at its Gogarburn headquarters in Edinburgh on Tuesday, where the lender is likely to face questions on pay.

While its £607m bonus pool in 2012 was down 23% on £789m a year earlier, it included £215m for investment bankers. However, the bank said it was recouping £302m for its Libor settlement by cutting the 2012 bonus pot, clawing back from previous years and reducing current year awards.

Shareholder advisory body Pirc is calling for investors to reject its pay report over excessive rewards. It said: "The bottom line is that the bank, similarly to its major competitors, has a remuneration structure which can lead to excessive pay."

RBS is also likely to face questions over an IT meltdown last summer which locked up to 17 million customers out of their accounts.

City watchdog the Financial Conduct Authority (FCA) has started a probe into the fiasco in June and July last year, which saw payments go awry, wages appear to go missing and home purchases and holidays interrupted.

The glitch affected customers of RBS, NatWest and Ulster Bank, and prompted Mr Hester to hand back his bonus for 2012. The bank could face a fine, censure or both for the incident which reportedly followed a botched attempt to update software on its payment processing system. It has already taken a £175m hit to cover costs and compensation for the catastrophe.

The lender will also underline its progress on shrinking the bank and returning it to health. Last year it quit the UK Government's £282bn asset protection scheme without making a claim on it and also floated its insurance arm, Direct Line Group.

RBS is trying to find a buyer for more than 300 branches after a deal to sell them to Santander fell through last year. Mr Hester has rejected suggestions the lender should be split into a "good" and "bad" bank, to separate out toxic assets.

In a recent newspaper interview, he said it would be costly and time-consuming. RBS is majority-owned by the taxpayer after a £45bn bailout at the peak of the financial crisis in 2008.

Laud the masters of the universe, who were integral in bringing down the worlds banking system, are rife with fraud and criminality.

Point the fingers at Darius and Amelia from Romania, or Joe Bloggs and down at the local spending his gyro on cheap cider...

We've got things so utterly wrong in the UK. No independent thought.

Edited by cashinmattress

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no wonder it's hard to get in there when you get bonueses for this sort of performance.

Not to mention that none of the banksters responsible for the Libor fixing and other frauds has been criminally prosecuted... :angry:

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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