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Banks Set to Face Bonus Claims

Fri, 13 Feb 2009

Bankers are reportedly preparing to sue state owned banks over a denial of bonuses. Several high street banks, including Northern Rock and the Royal Bank of Scotland, could be sued for several million pounds as lawyers prepare claims from dozens of financial sector staff. These two banks have been asked by Gordon Brown to forgo executive bonuses this year following the financial difficulties, and are allegedly set to be most targeted. Mr Brown's spokesman said on Monday that the Prime Minister was 'very angry' about reports that RBS would pay bonuses of up to £1 billion, in a year when the taxpayer has taken a 68 per cent stake in the bank.

Ronnie Fox, a leading City employment lawyer, told the Independent newspaper, 'I have been advising senior bankers about their positions in the banks and the payment of bonuses. Bankers are now talking about suing for these bonuses. Some of them are very concerned and upset. The most aggrieved people are those who performed well and did make significant profits for the banks but have lost bonuses and sometimes their jobs .'

Meanwhile, Barclays, which has not taken any public money, said it would cut its total bonus bill for 2008 by 48 per cent compared to the previous year.
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