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date: 3 December 2009

embargo: For immediate release

Chancellor must stamp out any return to disastrous city bonus culture

Commenting on the reported threat by the RBS board to resign if their bonus pool is vetoed by the Government, TUC General Secretary Brendan Barber said:

'Bankers should not forget that were it not for the massive taxpayer funded bailout to prevent the bankruptcy of their institutions, they would be drawing their dole rather than bonuses this year.

'The Chancellor must keep his veto over bonuses and stamp out any return to the banks' disastrous bonus culture.

'Shareholders have failed to hold banks to account. Boardrooms have run banks to build up big bonuses rather than serve their customers or the long-term interests of shareholder. It's time for shareholders and fund managers to get tough.

'We urge shareholders to examine their investment principles and insert 'do no harm' clauses that would challenge any excessive risk taking that threatens the long term stability of our banking sector.'

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Press release (300 words) issued 3 Dec 2009