The Financial Times has reported that Nigel Lawson, former Tory chancellor, has urged George Osborne to fully nationalise the Royal Bank of Scotland, attacking the banking industry’s bonus culture and what he says are its overrated 'star' traders.
Lord Lawson said there was a case for paying no bonuses at RBS this year following the Libor scandal, which is expected to cost the bank a fine of at least $790m.
The 80-year-old peer, who sits on the parliamentary commission on banking standards, told the Financial Times that lenders should stop worrying about 'losing star performers' if bonuses were cut.
'These are not particularly impressive individuals', he said in an interview. Lord Lawson said the youthful energy needed to be a trader was not in short supply: 'They’re all of them easily replaced, particularly in today’s labour market'.
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