Out of credit

Given that taxpayers effectively own 84 per cent of the bank following its nationalisation at the height of the credit crunch, perhaps some of the people who own RBS should step forward rather than banking industry worthies.

For, if this happened, it might – just – end the disparity between the £7.7m pay package being claimed by the bank’s chief executive, Stephen Hester, and the continuing concerns that insufficient regard is being given to the needs of small businesses and others.

In many respects, the executive pay scandal can be traced back to Labour’s original bailout and the failure of Alistair Darling, the then Chancellor, to put in place limits on bonuses at a time when the banks would have been forced to accept such strictures.

This would have negated some of the public’s contempt towards the banking industry, though, of course, it should be remembered that there do need to be some incentives so that taxpayers receive, in due course, the best possible return as institutions like RBS return to profitability and a sounder financial footing.

Many of the difficulties can also be avoided if Mr Hester, and his counterparts at rival banks, show some humility, and recognise the reasons why their pay packages continue to cause offence to so many.

The arrogance demonstrated at the AGM is unlikely to win the banks new friends as they look to rebuild their finances – and their public credibility.