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UK Minister: Bailed-out banks must justify bonuses

A British minister says the government may intervene to prevent bailed-out banks from paying large bonuses to employees.
/ Source: The Associated Press

A British minister says the government may intervene to prevent bailed-out banks from paying large bonuses to employees.

City minister Paul Myners, a member of the House of Lords, told BBC television on Sunday that banks that received taxpayer-funded bailouts cannot justify awarding big bonuses.

The Royal Bank of Scotland, which is 70 percent government-owned, has denied it plans to offer executives bonuses of up to 5 million pounds (US$8.2 million) each. But the bank says it is making decisions on the level of bonuses to be awarded this year.

Myners says bailed-out banks must justify any bonus payments.

Last year, RBS posted a 24.1 billion ($38.1 billion) pound loss — the biggest annual loss in British corporate history.