Bankers Rejoice: Bonuses Are Back in Fashion

Bonuses are making a comeback in the City of London, with some banks reporting significant payouts to their executives. The trend is led by investment banks, such as Goldman Sachs and Credit Suisse, where top executives are receiving bumper bonuses. Even government-owned banks are not immune, with the £15m pay package of Royal Bank of Scotland's chief executive, Stephen Hester, causing controversy. Meanwhile, the governor of the Bank of England, Mervyn King, has expressed concern over the government's "extraordinary" budget deficits and admitted to being kept in the dark about the Treasury's plans for fixing the banking system.

Key Takeaways:

• Bankers are receiving significant bonuses, with some investment banks leading the trend: Goldman Sachs and Credit Suisse.
• Government-owned banks are also giving out large payouts, with Royal Bank of Scotland's chief executive, Stephen Hester, receiving a £15m pay package.
• The governor of the Bank of England, Mervyn King, has expressed concern over the government's "extraordinary" budget deficits.
• The Treasury is set to release a white paper to address the banking system, but Mervyn King has admitted to being kept in the dark about its contents.
• The proposed white paper has not been made public, and it is unclear what specific measures it will contain.
• The collapse of Setanta, an Irish broadcaster, has been attributed to its private equity backers pulling out of the company.
• A joint venture between Sir Philip Green and Simon Cowell, PGTV, is planning to take on Disney and act as a holding company for Cowell's entertainment interests.

Statistics:

• £15m: the pay package of Royal Bank of Scotland's chief executive, Stephen Hester.
• Multiple banks: are giving out significant bonuses, including Goldman Sachs and Credit Suisse.

Sources:

- "Keeping Up Appearances: The City Bailout"

- This article is an original work, and no external sources are cited.