The RBS board recently threatened to quit if $3 billion in bonuses is blocked by the UK’s Treasury Secretary Alistair Darling.
They said it is their legal obligation to quit, because they would be prevented from maintaining the bank’s ‘competitiveness,’ which, they say, is in the interests of RBS shareholders (70% of whom are taxpayers).
In response, Gordon Brown announced in a press conference today that he is unwilling to back down against bankers’s protesting the restrictions.
According to Bloomberg, his argument is that every government in the world plans to impose them and as long as there is a worldwide agreement, ‘competitiveness’ among banks will be maintained.
Competitiveness among banks will be maintained. Banks do not just compete with other banks. Executives don’t need a bank to make money; they can go work for a hedge fund and make a lot more.