UKFI softened government plans for bonus cuts in RBS and Lloyds

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UK Financial Investments, the Treasury unit that manages the government's stakes in RBS and Lloyds, says it softened government plans for sharp cuts in bonuses at both banks.

The BBC reports that Robin Budenberg, chairman of UKFI, told MPs that Chancellor George Osborne had proposed reductions that exceeded what was 'commercially acceptable'.

As a result, UKFI had limited the extent of the cuts, he said.

Mr Budenberg was speaking during a Treasury Select Committee meeting.

The government owns 81% of Royal Bank of Scotland and 39% of Lloyds.

UKFI was set up after RBS and Lloyds were bailed out with $101bn of taxpayers' money during the 2008 financial crisis.

To access the complete BBC article hit the link below:

UKFI boss say it limited cuts to RBS bankers' bonuses

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