LONDON, Jan 11 (Reuters) - The British government has no powers to restrict bonuses at the Royal Bank of Scotland RBS.L this year, the finance minister George Osborne said on Tuesday.
“The (government’s contract with RBS) puts no contraints on RBS bonuses for this year,” Osborne told parliament.
The government owns more than 80 percent of the bank after it pumped billions into RBS to save it from financial collapse.
“The British people and this government will not accept extravagant bonuses this year without a change in behaviour,” Osborne said.
He said no measures were off the table for the government if it could not persuade banks to adopt a new approach which would need to include a more responsible approach to bonuses and a commitment to lend more. (Reporting by Matt Falloon and Mohammed Abbas)
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