Daily Archives: December 7, 2009

There is one fascinating nugget in the 500+ page Asset Protection Scheme agreement between the Treasury and Royal Bank of Scotland.

We’ve all heard about the Treasury taking the power to veto some bonuses. But Alistair Darling has also banned RBS from underpaying the bankers working on the APS. The chancellor is insisting that they are paid roughly the same as colleagues working on non-toxic assets. And there will be special bonuses for reaching certain targets regarding the APS. Who says politicians don’t like bonuses? Read more

There is some furious tax planning afoot at the Treasury. The goal: a one-off levy on bankers that will limit the political damage from that champaigne-guzzling, Porsche-buying, loads-a-money bonus pay-out moment.

It will attempt to placate the baying mob rather than pay down the deficit. But in order for this to work, bankers need to feel the pinch. Announcing a clampdown that includes a big loophole will be a PR disaster for Alistair Darling. Read more