No Ransom for banks - Bank cannot hold taxpayer to ransom says Vince Cable

12.00.00am GMT Tue 1st Dec 2009

Prospective Lewisham West & Penge MP Alex Feakes with Lib Dem Shadow Chancellor Vince Cable

Liberal Democrat Shadow Chancellor Vince Cable has argued strongly that it is time to call the bluff of the RBS directors threatening to resign unless the government lets them pay £1.5m bonuses.

Vince said "I would welcome their resignations, as the bank cannot and should not be allowed to hold the taxpayer to ransom."

Alex Feakes, local prospective MP and chair of Lewisham's Public Accounts scrutiny committee, commented: "This bank is three quarters owned by the government and it's time that Gordon Brown took responsibility for how it's spending our money"

"The directors want to pay bonuses of £1.5m on a profit of £6m in the same division whose casino activities got the bank into trouble in the first place. Where else would it be acceptable to take 25% commission?"

"The government has a duty to ensure that this publicly owned bank operates in the public interest."