The revelation in The Mail-On-Sunday that Royal Bank of Scotland (RBS), a bank 70% owned by the UK taxpayer, is spending $493,000 on entertainment at this year's Wimbledon Tennis Championship gave rise to predictable cries of outrage.

How dare the bank spend this kind of money on senior bankers off on a jolly! But, the truth is, it is not. The expenses are being incurred to entertain 550 guests during the two weeks of the tournament - guests who will hopefully be able to do business with the bank and help increase its profits. Banking, of course, is a relationship business, and it's at events like Wimbledon that business gets done.

And quite how Labour MP John Mann, a member of the Commons Treasury Select Committee, has the audacity to exclaim that 'it is disgusting. There is no place for this kind of largesse at the current time', is beyond me. Focus your attention on getting your own House in order, sir. The matter of MP's expenses is the real national disgrace.

Members of Parliament and, for that matter, members of the public, have got to realise that they are not in the business of running the UK banking industry. There is new management at RBS, and these executives need to be able to run the business as best they see fit. If CEO Stephen Hester feels that the $493,000 is money well-spent, we have to accept his judgement. If his judgement proves faulty, and the bank does not make the recovery we hope for, and expect, Hester will fall on his sword.

And, please, let's not make the mistakes that US lawmakers made with bailed-out banks and corporate hospitality across the pond. The backlash against bankers in the US, stirred up in the main by politicians with an eye on re-election, led to countless offsites, away-days, conventions, corporate events and sponsorship deals being cancelled. And the upshot ? Thousands more jobs were lost in the corporate hospitality / leisure industry, as companies pulled in their horns, and the burden on the taxpayer increased as more people went on benefits. Clever, eh ?

So, let's not second-guess the leaders of our banking industry. They are paid to manage, so let's let them do so.

Finally, during an interview with Bloomberg, former RBS chairman George Mathewson laments that 'any money I've earned has all been in RBS stock, enough to make a serious loss'. Strange, then, that The Times reported over the weekend that Mathewson will collect around $5m from the sale of Wood Mackenzie, the energy and research consultancy that he has chaired since October 2007. By George, it's not all bad, then!

Please use the 'E-Mail' button immediately under the article title to send this item to a friend.

Press here to comment on this story >>

Today in Life: The Economy According to Recruiters >>

TODAY

• Top Firms Finally Hit By H1N1 Threat
• 'It's Not As If They Paid Great Bonuses In The First Place!'
• Top Firm Caught Out By Rogue Traders

THIS WEEK

• Bank Of America CEO Poll - Incredible Result
• Speculation Mounts About Goldman's Bonus Plans
• Bankers Will Have The Last Laugh On Pay