Bailed-out banks criticised over bonus payouts

Banks bailed out by the taxpayer in 2008 are set to pay out millions of pounds in bonuses, attracting criticism that bankers are awarding themselves ‘rewards for failure’.

Royal Bank of Scotland, which has a 68 per cent government stake, is preparing to pay up to £160 million in bonuses while Lloyds Banking Group, 43 per cent state-owned, has said it will pay out reduced but still significant incentives. In addition, fully nationalised Bradford & Bingley and Northern Rock have come under fire for paying out bonuses of 9 or 10 per cent to all staff.