LONDON — U.S. President Barack Obama has called for an annual salary cap of $500,000 for directors of banks receiving government funds. (It is worth noting that this sum is $100,000 more than the president's salary.)
President Sarkozy of France is reported to be demanding stringent restrictions on bankers pay. The British government has tried to defuse the problem by setting up a committee to report on banker remuneration by yearend. This apparent delaying tactic has not satisfied public opinion, which is outraged at corporate bankers' receiving huge bonuses despite banking losses and despite the catastrophic fall in bank shares.
Reports that the Royal Bank of Scotland, now 70 percent publicly owned, ownership wants to pay £1 billion in bonuses to staff after posting its largest loss in banking history have now forced the government to demand significant restraint on bonus payments.