bored of ppl tweeting that because barclays benefited from the taxpayer bailout, but didn't specifically receive bailout money into its own accounts, its ok for them to pay £m bonuses. anyone written a piece on why this is obviously a stupid argument, to save me the bother?
"There are two ways I would say the system as a whole benefited generically. One was in the injection of liquidity undertaken by the Bank of England and a new structure put in place in March 2008. And the other was the making available of guarantees from government for funding undertaken by banks.
"It is important to recognise that in each case the banks were encouraged to use these new structures that were put in place and we did.
"It is also important to recognise that we were required and we did pay a price for these things but I'm not trivialising the importance of the intervention. It was important.”
Barclays has said it is to raise £6.5bn of new capital. The bank is to raise the money from private investors, rather than going to the government. Barclays also said it would scrap its final dividend payout for 2008, saving it £2bn.
Barclays announced a new compensation system following its Project Merlin deal with the government which will see it pay 7% less in performance awards than last year. At its investment banking arm Barclays Capital, which saw pre-tax profits excluding own credit increase by 2% to £4.4 billion, the bonus pool will be 12% lower than last year.