Record bonuses paid out to Rangers' bankers

Labour and some Liberal politicians have joined Walter Smith in criticising the Lloyds banking group.

Last week the under pressure Rangers boss accused the clubs bankers of ‘dictating the policy overall’ and that ‘we are well and truly in the hands of the bank’.

Smith is unhappy that he has no money to spend on players during the January transfer window and will no doubt be furious to learn that outgoing Lloyds Chief Executive Eric Daniels will reportedly receive a golden goodbye of £6m- enough to leave some loose change after splashing out on Nikica Jelavic and James Beattie.

The banking industry is facing fierce criticism from politicians as they return to the bonus culture that was put on hold in 2009.

Despite being bailed out by the Government the banking industry is expected to pay out £7bn in bonuses against a background of widespread public spending cuts.

UK banks made a profit of £37bn last year and are expected to return profits of over £50bn this year.

Lloyds who inherited the Rangers and Murray Group account during their takeover of HBOS posted a profit of £5bn last year and are 65% owned by the government after a £260bn buy out of toxic debt in 2009.

Labour’s shadow Chancellor, Alan Johnston said: “This Government came into power with the first paragraph of the coalition agreement saying, ‘We will introduce detailed plans to tackle this issue of bankers’ bonuses,’ when we’re going to get nothing.”

Last month Liberal Business Secretary Vince Cable said: “We have to take robust action on unacceptable bonuses. Both (coalition) parties are fully signed up to that.”

Whilst in opposition Tory George Osborne, now Chancellor,  said: “It would be inexcusable for banks to pay big bonuses when there are so many businesses that need that cash.”

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