James Moore: Hester faces his tormentors alone as RBS top brass retreat to their bunkers

Outlook: Sir Philip Hampton has been doing a marvellous impersonation of the invisible man of British banking

So the saying goes, it is only sticks and stones that break bones. But names surely do hurt. So much so it is apparently worth £1m in shares to Stephen Hester to get the tormentors who have been calling him nasty ones to belt up.

"A personal decision," was the explanation from RBS's army of spin doctors (there are more than 40, plus agencies) for Mr Hester giving up his bonus, just before they replaced their tin hats and retired to their bunkers.

Which is where they will have found the remainder of the bank's directors who have largely remained mute while the scandal engulfed Mr Hester and he became media and political bogeyman of the week.

I've already noted the fact that RBS's chairman, Sir Philip Hampton, has been doing a marvellous impersonation of the invisible man of British banking throughout the whole saga. Perhaps he thinks that passing on his own payout (of about £1.4m) gives him the right to do so.

There has been no such altruism from the members of RBS's remuneration committee, who are responsible for setting and overseeing pay awards.

If the spin doctors and Sir Philip have been hard to find, Penny Hughes, John McFarlane, Alison Davis, and Sir Sandy Crombie have been hiding in another dimension (although perhaps we can award the latter a pass given that he voluntarily gave up £500,000 in 2004 when the company he was then running, Standard Life, was on its knees).

Poor Mr Hester. He's been left to face the wolves on his own on this one. No wonder the shares hit the skids yesterday.

Those RBS directors probably hope that this will end the matter (for now). It shouldn't.

For a start it has always seemeda bit rich that only chief executives of banks are required to give up their unconscionable bonuses. What about the other senior RBS executives? Right now the likes of the finance director, Bruce Van Saun, and investment banking chief, John Hourican, will be looking excitedly at their rapidly expanding share banks. Share banks that could yet pay out hugely when their owners finally get access to their stocks in two or three years' time, given the fact that the bank's shares are undervalued by almost any measure you'd care to look at, largely because of investors' fears about the eurozone and its impact on the banking sector.

Then there is the bank's long-term incentive plan, yet another bonus scheme in which all three men will be participating.

According to the Bank of England's Robert Jenkins, the combined annual bonus payments which Mr Hester and Sir Philip have given up (£2.4m) would be enough to back £48m of loans to small businesses. Another £10bn would be available for lending from the £500m or so that the bank plans to pay its investment bankers.

This is something to think about in an economy that is in part being strangled by a lack of credit.

Rank could get a winning hand with Gala deal

Is Rank about to hit the jackpot?

The gaming group yesterday confirmed it was in talks with Gala about adding the latter's casino business to its own.

Such a deal would give the company ownership of about 40 per cent of British casinos.

Not quite an unbeatable hand, then, but not far off, and one might think competition watchdogs would at least run the slide rule over such a transaction, if it actually gets done. Apparently not, at least at a European level.

People close to the situation say they would factor in the market share of online operators, despite the two serving quite different consumers and the fact Rank likes to market its gaming houses as "leisure destinations" rather than gambling dens.

They also point out that margins on machines and games like roulette are fixed by the gambling commission, which is all fine and dandy, but since when did a significant reduction in competition like this actually end up benefiting the consumer?

Ultimately, Rank hopes punters will in future spell casino with a "G", the brand with which is has been revitalising its Grosvenor outlets.

They might not have much choice if the company plays its cards right with Gala and the regulators turn a blind eye.

 

Ministers to blame for end of flood risk cover

Anyone who has ever had to deal with an insurance company will probably find it hard to summon up much sympathy for the industry.

However, when it comes to the issue of insuring homes at risk of flooding, the industry is getting a taste of how it feels to be a frustrated claimant.

Nowhere else in the world are such homes able to secure insurance, at least not commercially. Despite a policy of building on flood plains that one might consider almost criminally negligent by the last government, the UK is different. Cover might be expensive, but it should be available, not least through being subsidised by those who live in low-risk areas. But that won't last.

Today, the House of Commons Public Accounts Committee will issue a report on the issue of flood risk that will ignite a debate that had been damped down by a deal struck in 2000 when the industry agreed to provide cover in return for more public funds allocated to flood defences.

The trouble is that deal comes to an end in 2013, and no talks are being held on its replacement, despite a warning being issued in 2008.

Ministers seem content to ignore the situation in the hope it will go away. As a result, 200,000 homes risk being left under water.

For once, their insurers won't be too blame.

Suggested Topics
Arts and Entertainment
The cast of The Big Bang Theory in a still from the show
tvBig Bang Theory filming delayed by contract dispute over actors' pay
Sport
England celebrate a wicket for Moeen Ali
sportMoeen Ali stars with five wickets as Cook's men level India series
News
peopleGuitarist, who played with Aerosmith, Lou Reed and Alice Cooper among others, was 71
News
Robyn Lawley
people
PROMOTED VIDEO
News
people
News
people
News
i100  ... he was into holy war way before it was on trend
Life and Style
lifeDon't get caught up on climaxing
Life and Style
food + drinkVegetarians enjoy food as much as anyone else, writes Susan Elkin
Arts and Entertainment
Harry Potter (Daniel Radcliffe), Hermione Granger (Emma Watson) and Ron Weasley (Rupert Grint)
newsBloomsbury unveils new covers for JK Rowling's wizarding series
News
scienceScientists try to explain the moon's funny shape
Sport
Usain Bolt confirms he will run in both the heats and the finals of the men's relay at the Commonwealth Games
commonwealth games
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
peopleHowards' Way actress, and former mistress of Jeffrey Archer, was 60
Life and Style
Troy Baker and Ashley Johnson voice the show’s heroes
gamingOnce stilted and melodramatic, Hollywood is giving acting in video games a makeover
News
i100
Arts and Entertainment
As Loki in The Avengers (2012)
filmRead Tom Hiddleston's email to Joss Whedon on prospect of playing Loki
Voices
voices In defence of the charcoal-furred feline, by Felicity Morse
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

1st Line Support Technician / Application Support

£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...

Team Secretary - (Client Development/Sales Team) - Wimbledon

£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...

Accountant / Assistant Management Accountant

Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...

Senior Investment Accounting Change Manager

£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...

Day In a Page

Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices
Could our smartphones soon be diagnosing diseases via Health Kit and Google Fit?

Could smartphones soon be diagnosing diseases?

Health Kit and Google Fit have been described as "the beginning of a health revolution"
Ryanair has turned on the 'charm offensive' but can we learn to love the cut-price carrier again?

Can we learn to love Ryanair again?

Four recent travellers give their verdicts on the carrier's improved customer service
Billionaire founder of Spanx launches range of jeans that offers

Spanx launches range of jeans

The jeans come in two styles, multiple cuts and three washes and will go on sale in the UK in October
10 best over-ear headphones

Aural pleasure: 10 best over-ear headphones

Listen to your favourite tracks with this selection, offering everything from lambskin earmuffs to stainless steel
Commonwealth Games 2014: David Millar ready to serve up gold for his beloved Scotland in the end

Commonwealth Games

David Millar ready to serve up gold for his beloved Scotland in the end
UCI Mountain Bike World Cup 2014: Downhill all the way to the top for the Atherton siblings

UCI Mountain Bike World Cup

Downhill all the way to the top for the Atherton siblings
Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star