Cable slams Govt over Rock bonuses

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The Government has been attacked by the Liberal Democrats after it emerged Northern Rock staff will receive £9m in bonuses - simply for repaying part of its bail-out loan on time.

The payout, which applies to all 4,400 staff at the nationalised lender, is the first stage in an incentive scheme that could see Northern Rock pay more than £50m to its workers over the next few years. The sum does not include the seven-figure bonus pool which senior executives will enjoy, less than 12 months after the bank needed a £26bn taxpayer-funded bail-out in February last year. "This is bringing the worst of the City bonus culture into a public body," says Vince Cable, Shadow Chancellor for the Liberal Democrats. "This is an extraordinary action from a state-owned bank which st...

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