Business NEWS

Royal Bank of Scotland- RBS and Lloyds Banking agreed to caps on bankers bonuses, Asset sales

By Thomas Frommherz for CEOWORLD Magazine Updated:November 3, 2009

Royal Bank of Scotland (NYSE:RBS) (LON:RBS) and Lloyds Banking Group (NYSE:LYG) (LON:LLOY) said today that they will not pay cash bonuses to any staff earning over £39,000 this year.

RBS and Lloyds, which today agreed to take another £25.5bn and £5.7bn from the Government respectively, have also been forced by the European Union to sell a slew of businesses.

Royal Bank of Scotland- – To sell within the next four years parts of its UK branch and corporate business; RBS Insurance; Global Merchant Services; and its interest in RBS Sempra Commodities.

It includes 318 branches (14 percent of RBS’s UK retail network), 1.7 million retail customers, 230,000 SME customers, about 6,000 staff and 20 billion pounds of assets.

It represents 2 percentage points share of the UK retail market, 5 percentage points of the SME market, and 5 percentage points of the mid-corporate market.

LLOYDS- Disposal of a retail banking business with at least 600 branches, a 4.6 percent current account market share and about 19 percent of the bank’s mortgage balances.

Lloyds will sell the TSB brand; the branches, savings accounts and branch-based mortgages of Cheltenham & Gloucester; the branches and customers of Lloyds TSB Scotland; additional Lloyds TSB branches and customers in England and Wales; and Intelligent Finance.

European bank shares .SX7P fell sharply on Tuesday, hitting a more than two-month low, as poor results from UBS (UBSN.VX) with HSBC (HSBA.L), Deutsche Bank (DBKGn.DE), BNP Paribas (BNPP.PA), Societe Generale (SOGN.PA), Banco Santander (SAN.MC) and Credit Suisse (CSGN.VX) down between 3.1 percent and 5.5 percent.

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