Archive for February, 2009

The Royal Bank of Scotland, despite receiving a £20bn cash injection, is planning to spend £1bn on bonuses for bank executives. Labour’s spokesman in the Cities of London and Wesminster says no.

David Rowntree is asking Westminster residents to sign the petition at www.giveupthebonus.co.uk to send a message to this state-supported bank that this behaviour is unacceptable. So far, over 18,000 people have signed the petition, many leaving messages of support or indeed words of advice for RBS executives.

David Rowntree said, “Surely this is just common sense? The state owns nearly 70% of this bank, which owes us £20bn in cash. I’m simply suggesting they should pay us back before they start paying themselves.”

Last week also saw former RBS Chief Executive Fred “the shred” Goodwin and current boss Stephen Hester giving evidence to the Treasury Select Committee, at which they expressed regret and apologised for the banking crisis.

So far, the Conservative MP for The City, Mark Field, has been silent on the issue, calling into question who he feels he truly represents. The question remains, as the MP for Britain’s financial centre, why will Field not use his position to hold the bankers to account?

A number of MPs of all political parties have supported one of the three EDMs (Early Day Motions) on this subject. EDM 720 says, “That this House is deeply concerned about the payment of bonuses to senior executives by state-supported banks; notes that taxpayers have made £37 billion available to those banks; and calls on the Government to seek ways to limit excessive banking salaries and to end bonuses for senior executives altogether until the taxpayer is repaid in full.”

David Rowntree has written to every MP asking them to back a cap on salaries and bonuses in the state-supported banks, in particular, to sign one of the three Early Day Motions (EDM) in Parliament on the subject. So far, Mark Field, Conservative MP for the Cities of London & Westminster hasn’t signed EDMs 720, 723 or 743.

David said, “During this banking crisis, being the MP for the City is hugely symbolic. Yet Mark Field will not make clear whether he is the people’s parliamentarian or whether he belongs to the bankers.”