|Quality time for Bankers?|
The weighty 571-page report has recommended that the government review alternatives for selling off the Royal Bank of Scotland (RBS), including breaking it up, and has demanded action to make the banking market more competitive. In relation to RBS, the committee only suggested that the Westminster government formally look at different options for the nationalised bank by September 2013. Some committee members recommended splitting RBS between a "good bank" (an active High Street lender with a cleaned-up balance sheet) and a "bad bank" (a warehouse for all of the dud loans left over from last decade's debt bubble).
Another option, which was backed by the Archbishop of Canterbury and committee member Justin Welby suggested breaking RBS up into a number of smaller regional banks. The committee cautioned against rushing to privatise the bank, which it said risked getting poor value for the taxpayer, and because the committee believed RBS first needed to be restructured, in order to make sure it played its key role in supporting the economy. This is the cross-party parliamentary group's fifth report laid into the lack of accountability of bankers and also recommended that some bankers bonuses be withheld for up to 10 years - something that would probably not upset many people, save for the bankers.