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Banking group 'plans £120m bonuses'
Lloyds Banking Group is planning to hand out bonuses totalling around £120 million to staff, despite last week's announcement of losses totalling £10 billion by its HBOS subsidiary, it has been reported.
The Sunday Telegraph quoted unnamed "sources close to Lloyds" as saying the group was in discussions over the bonuses with UK Financial Investments, the Government-owned body that oversees the taxpayer's 43% stake in the bank.
Lloyds refused to comment on the size of any bonus package, but pointed out that the majority of its staff work in its 3,000 retail branches and many typically earn bonuses of less than £1,000 in a year.
The report comes amid speculation that the Government - which has already poured £17 billion into the group - may be forced to take a majority stake in Lloyds, or even nationalise it, as a result of the HBOS losses.
Speculation was fuelled on Friday when Chancellor Alistair Darling declined to rule out nationalisation, saying only there was "a range of options that we will be deploying".
But he has now adopted a different tone, stressing ministers feel banks are "best run in the commercial sector and privately owned".
And the Sunday Telegraph quoted a 10 Downing Street aide as saying full state control of the group was "not under active consideration".
The Government came under fierce attack from the Conservatives for its part in the merger of Lloyds TSB and HBOS, which shadow business secretary Kenneth Clarke branded a "disaster" which should never have taken place.
The report is likely to further fuel controversy over banking bonuses following last week's news that RBS, which has also been bailed out by the Government, is planning to hand out £1 billion to staff.
When the Government bought shares in Lloyds/HBOS and RBS last October it secured agreements that there would be no cash bonuses for board members this year, but no ban was imposed on payouts for staff below this level.
Lloyds Banking Group is planning to hand out bonuses totalling around £120 million to staff, despite last week's announcement of losses totalling £10 billion by its HBOS subsidiary, it has been reported.
The Sunday Telegraph quoted unnamed "sources close to Lloyds" as saying the group was in discussions over the bonuses with UK Financial Investments, the Government-owned body that oversees the taxpayer's 43% stake in the bank.
Lloyds refused to comment on the size of any bonus package, but pointed out that the majority of its staff work in its 3,000 retail branches and many typically earn bonuses of less than £1,000 in a year.
The report comes amid speculation that the Government - which has already poured £17 billion into the group - may be forced to take a majority stake in Lloyds, or even nationalise it, as a result of the HBOS losses.
Speculation was fuelled on Friday when Chancellor Alistair Darling declined to rule out nationalisation, saying only there was "a range of options that we will be deploying".
But he has now adopted a different tone, stressing ministers feel banks are "best run in the commercial sector and privately owned".
And the Sunday Telegraph quoted a 10 Downing Street aide as saying full state control of the group was "not under active consideration".
The Government came under fierce attack from the Conservatives for its part in the merger of Lloyds TSB and HBOS, which shadow business secretary Kenneth Clarke branded a "disaster" which should never have taken place.
The report is likely to further fuel controversy over banking bonuses following last week's news that RBS, which has also been bailed out by the Government, is planning to hand out £1 billion to staff.
When the Government bought shares in Lloyds/HBOS and RBS last October it secured agreements that there would be no cash bonuses for board members this year, but no ban was imposed on payouts for staff below this level.
