Banning bank bonuses could hurt taxpayer

Elliot Lane
Lloyds sign
Lloyds sign

Public outrage at bankers' bonuses could cost the taxpayer millions of pounds after £900m was wiped off Royal Bank of Scotland (RBS) and Lloyd's Banking Group shares yesterday.

Analysts believe the political intervention that forced RBS chief Stephen Hester to relinquish his £1m bonus could scare off potential investors and high-flying bank executives from joining UK banks.