The second cryptic twister.

Two days ago, we learned how top investment bankers at Lloyds Banking Group “earn” bonuses out of losses (or rather negative profits). Now we hear that RBS paid its investment bankers £1.3bn after it made £1bn in profit in 2009 and not the reported £5.7bn. This is because £4.7bn of the bank’s worst losses were transferred to a “non-core” division. Two other things to clock are that:-

• 100 of the investment bankers received more that £1m each
• Chief executive Stephen Hester justified the bonus to the parliamentary select committee on the basis of staff retention. Michael Reuther, head of corporates and markets division of Commerzbank the large German bank said that his bank would still be able to attract and retain staff. Commerzbank is not paying any bonuses.

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