Pressure for bank salary cuts intensifies

PRESSURE for deep cuts in the salaries of senior bankers in return for a bailout from taxpayers intensified last night.

As Irish Life and Permanent moved to slash the financial packages for its top staff, Fine Gael warned ministers not to “bottle out” of imposing similar restraints on bosses at AIB and Bank of Ireland as part of their proposed €7bn recapitalisation initiative.

While Social and Family Affairs Minister Mary Hanafin branded some of the sums earned by senior bankers as “absolutely outrageous”, the opposition warned the cabinet lacks the spine to take action.