Part nationalised banks are for lending, not bonuses

5.15.38pm GMT Thu 25th Feb 2010

Jo has slammed RBS for giving bankers excessive bonuses while refusing to lend money to taxpayers.

Jo's criticism of RBS comes in the wake of the announcement that the bank posted losses of £3.6 billion, while at the same time rewarding its investment bankers with £1.3 billion in bonus payments.

The news comes amidst a backdrop of frustration felt by many people in East Dunbartonshire at the lack of lending from the banks which were bailed out by the Government over a year ago. Although RBS is meeting its mortgage lending target, business lending has fallen in the last year.

Commenting, Jo said:

"With RBS making such huge losses, it is truly appalling that the bank is paying out over a billion pounds in bonuses.

"Many viable businesses in East Dunbartonshire have had great difficult getting loans from the banks which have been bailed out with our taxes, and some have gone out of business as a result. RBS has made a commitment to providing capital for businesses, and given the financial help that it has received from hard working people all across the country, we fully expect them to honour their pledge.

"We need better policing of our state owned banks to ensure that taxpayers are getting value for their money."

Comment, Liberal Democrat Shadow Chancellor Vince Cable said:

"It's hard to understand why £1.3bn is being paid out in bonuses when RBS continues to make losses.

"RBS rewarding individual bankers is like a football team paying their striker for scoring when they've just been relegated.  

"While it is good news that RBS is meeting its mortgage lending target, its lending to business has fallen.

"The Government has to get a grip and explain how it will exercise its 84% shareholding in RBS to benefit the taxpayer. At present we are seeing very little. Part nationalised banks are for lending, not bonuses."