Bank bonus backlash

The banking industry has come back into the spotlight, with RBS chief executive Stephen Hester's interview on the Today programme and George Osborne's speech to the Federation of Small Businesses (FSB) last night.

Stephen Hester admitted the banking industry had made mistakes, citing its rapid expansion over the past two decades as having created a sense of invincibility. Correcting its mistakes would be difficult, he added.

The bank boss affirmed he believed he deserved the controversial £1 million bonus, arguing that he and his colleagues had been instrumental in aiding the economic recovery, but had to turn it down because of public pressure.

Meanwhile, George Osborne sought to paint the opposition's tone on banker's bonuses as creating an environment hostile towards business.
The chancellor argued that those who pushed an anti-business environment would jeopardise Britain's recovery, although he accepted there was a need to reform the sector.
 

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