The Independent reports that Royal Bank of Scotland has come out and denied media reports that it is to pay 'bumper' bonuses this year.

Stories have been circulating that the average pay-out for global markets staff is likely to be in the region of $391,000, with some bankers likely to bag over $8m each. The bank has described the speculation as 'totally without foundation'.

In the meantime, as the UK government is said to be considering a 'windfall' tax on banks which don't tow the party line on bonus 'restraint', there are growing concerns that London's position as a major global financial center could soon be under threat, as firms relocate to more benign fiscal climates, and thousands of City jobs are lost..

The Financial Times reports that Barclays chairman Marcus Aguis is also concerned about regulatory excess and bonus bashing. Aguis told the newspaper that 'as long as the banks are not nationalised, and are operated as commercial companies, they have to generate enough returns to satisfy their shareholders....The next time the banking system wants capital, it won't be supplied (if) the potential new investors (don't) see the (attraction). One of the other consequences will be that credit will become more expensive, and (that) is not conducive to.... a return to economic growth around the world'.

And The Wall Street Journal reports that, over in the US, the Obama administration has toned down the rhetoric on bonuses. Perhaps the administration sees an opportunity to gain market share, bearing in mind that it's not too bank-friendly in the UK these days.

Finally, the newspaper also reports that, although staff at investment banks may be looking at bumper payouts this year-end, the same will not be the case for the majority of staff in the mutual funds / asset management industry. Bonuses are likely to be down by around 10% for most, with employees at some of the worst-performing firms seeing compensation cut by up to 30%.

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