Royal Bank of Scotland (RBS) and Lloyds have both agreed to defer bonuses in return for an additional £40bn of taxpayers' money as part of a deal with the Government that will break up two of Britain's biggest lenders.
In return for receiving billions of pounds more of taxpayers' money, the Treasury said that both banks will not pay cash bonuses for 2009 to any staff earning more than £39,000 a year while the board of each lender will defer bonuses due for this year until 2012.
Stephen Hester, the chief executive of RBS, who took over the role from his disgraced predecessor, Sir Fred Goodwin, said today: "That does mean we will be making extensive use of deferred payments and payments in shares. See story...
The Financial Services Authority (FSA) has agreed to reassess the controversial system for compensating customers of failed financial institutions, after months of heavy pressure from critics who claim it is unfair reports The Times.
The City regulator confirmed yesterday that it would begin a comprehensive review of the Financial Services Compensation Scheme (FSCS), a safety net for consumers established in 2001 to deal with a failure at a bank, insurer or fund manager.
The FSA said that next year it would begin consulting on possible changes to the FSCS, including the way in which it was funded. New rules could be formalised in 2011. The move comes after building societies, insurers, brokers and asset managers have berated the FSCS's annual levy as disproportionate and anti-competitive. See story...
Swiss bank UBS says it made a third quarter loss of 564m Swiss francs ($552m; £337m) after being hit by accounting charges of 2.15bn francs according to the BBC.
The Zurich-based bank says that without these one-off charges it would have made a pre-tax profit of 1.56bn francs.
The results are the third quarterly loss this year and the second under new chief executive Oswald Gruebel. See story...
