Bank warned over 'exorbitant' bonuses

Business Secretary Peter Mandelson today told the Royal Bank of Scotland it risked alienating the public by offering “exorbitant” bonuses to its traders and senior bankers.

The troubled bank – which is being propped up with £20bn (€22.5bn) of public money - was preparing to make payouts to thousands of the firm’s senior staff, according to The Times newspaper.

Mandelson said: “What I would say is please be mindful about how this looks and what public opinion will be.”