BANKS MUST NOT BE ALLOWED TO BLACKMAIL THE TAXPAYER

12.00.00am GMT Thu 3rd Dec 2009

Commenting on the news that directors of Royal Bank of Scotland are threatening to resign if the government stops them paying bonuses of £1.5bn to staff in its investment arm, Jenny Willott, Welsh Liberal Democrat MP for Cardiff Central, said:

"This is unbelievable. RBS Directors must not be allowed to blackmail the taxpayer.

"The banks just don't seem to be getting the message. RBS is effectively nationalised. The Government needs to take control and make sure that its pay and lending practices are always in the public interest.

"If the Government gives in now, we can kiss goodbye to fundamentally reforming the banking sector.

"Alistair Darling should call their bluff and accept their resignations."