This is going to be an interesting story. The Government, retreating rapidly into a left-wing core vote strategy, has hit upon a winner. Seize the excessive banking bonus' for itself and claim in a shroud of moral superiority that it won't allow greed to dominate.
RBS in return have clearly been consulting their lawyers and have reasonably decided that if this goes ahead the board will resign in protest at not being able to run the company.
it was always going to get messy when a left-wing Government took over the world's biggest bank (by assets).
Clearly, there is a need to pay the staff at RBS what is needed to retain their services, otherwise the bank will fail over time and the taxpayers investment will be for nothing. At the same time, a left-wing government just can't stand to see people make million pound bonus'
It is a purely ideological clash, it will be interesting to see who wins, time is on RBS' side with and election coming up, but that may cause the Government to act presumptuously.
I note Peter Mandelson being rather equinamical on the radio this morning, suggesting it will be hard for Labour to really push this through.