The chief secretary to the Treasury has poured cold water on plans being hatched inside Royal Bank of Scotland to pay bumper bonuses to senior staff.
Britain's biggest bank, HSBC, is preparing to hand out multimillion-pound share awards to 1,000 of its top staff as it attempts to bypass the new European Union rules capping bankers' bonuses.
State-controlled Royal Bank of Scotland is examining selling its US business Citizens and reducing the size of its investment bank, the agency in charge of the taxpayer's stake has said.
Selling off shares in Royal Bank of Scotland at a loss will face fierce resistance, the Liberal Democrats and Labour warned on Monday, amid fresh speculation that talks are underway with a sovereign wealth fund in Abu Dhabi to buy a stake in the bailed-out bank.
The clean-up bill for Royal Bank of Scotland and Lloyds Banking Group has already topped £90bn, put nearly 80,000 jobs on the line, and left taxpayers nursing a £32bn loss on their stakes in the bailed-out banks.