Banking: Royal Bank of Scotland — Question

Part of the debate – in the House of Lords at 3:04 pm on 1 February 2011.

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Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury 3:04, 1 February 2011

I am grateful to the noble Lord, because it enables me to point out that we are hamstrung in dealing with the bonus situation at RBS. The previous Government signed an agreement with RBS that did not cover the payment of bonuses this year, which means that our hands are tied. I wish they were not. It was the wholly inadequate agreement that the previous Government signed that leaves us where we are.