Publicly Owned Banks Should Not Be Paying Obscene Bonuses

People are quite right to be angry about the action of the bankers that helped create the longest and deepest recession since the Great Depression. People are right to be angry that the irresponsible actions and speculative excesses of bankers has had a devastating effect on the economy of 'main street'.

People are right to be angry that billions of pounds worth of taxpayers money had to be used to bail out the bankers and that, since then, the bankers do not seem to have changed their behaviour. People are angry that taxpayers money is being used to fund the ridiculous levels of bankers pay. Bonuses are up 40% at a time when everybody else is having to tighten their belts. Huge bonuses are being paid for on the back of taxpayer funded financial support. The banking sector has been quick to forget that without taking billions from the public purse they would have collapsed as institutions.

This morning, 85% taxpayer owned RBS announced a staggering £3.6 billion loss. Astonishingly, they also announced that they had paid out a shocking £1.3 billion in bonuses.

At the same time, it is becoming clear that banks like RBS are not fulfilling their obligations to provide finance to business.

People are quite right to demand action on this. Pay in the banking sector has become entirely out of kilter with the rest of society. It is frankly unjustifiable that banks who have relied upon the taxpayer for their very survival are effectively using taxpayers money to pay ridiculous bonuses while, at the same time, making a massive loss. That is why I support co-ordinated action to deal with excessive pay in the banking sector. I also strongly support the need for international agreement for a tax or levy on speculative financial transactions.

And the British people are right to suggest that the banks should probably think about paying the taxpayer back for keeping them in business before giving outrageous bonuses to their bankers.