RBS 'to bow to pressure on bonuses'

Royal Bank of Scotland (RBS) has indicated it will bow to pressure to slash executive bonuses after a bruising row with the British Treasury, it was reported today.

The bank, which was compelled to give the British government power over its bonus pot as part of its entry into a scheme to insure its toxic assets, is thought to want to cool tensions over the level of rewards it is able to pay.