Cashing in with our money

BRITAIN’S high street banks handed out dividends worth £14billion to shareholders just weeks before going cap in hand to the taxpayer for cash.

A study by the Sunday Express reveals that all five of Britain’s biggest banks have increased their handouts to shareholders in the past few weeks, despite pleading poverty because of the credit crunch.

The figures reveal that, far from being strapped for cash, the banks have lavished money on their shareholders and relied on the taxpayer to bail them out.

Between them the top five banks have paid out £13.8billion to shareholders in recent weeks, with one raising its dividend by 18 per cent. In total the five banks racked up profits of £38.6billion.

The revelations come just days after Chancellor Alistair Darling and Bank of England Governor Mervyn King agreed an unprecedented £50billion deal to bail out the banks.

Lib Dem Treasury spokesman Vincent Cable described the dividend payments as “utterly irresponsible and out of place”. Dr Cable said that although he accepted the need for the bail-out, the banks themselves should also be asking their shareholders for cash to help them through the crisis.

He said many executives appeared to be frightened they would get the sack if they turned to their share­holders for money. So far only one major bank, RBS, has said it will also look to its shareholders to raise a significant amount of cash.

Dr Cable added: “Is the pain being shared fairly? No, quite frankly.

“Where the banks have made bad decisions it is their shareholders, not the taxpayer, who should be paying.

“We would not have a scheme like this for the IT industry or the retail industry. It would be inconceivable.

See whole article here http://www.express.co.uk/posts/view/42658/...-with-our-money