The chief executive of RBS has launched a robust defence of the £800m bonus pool paid out by the taxpayer-backed bank amid £2bn of losses.

In an interview with Sky News business presenter Jeff Randall, Stephen Hester said bonuses for 2011 had been reduced to reflect the bank's performance. The total bonus pool has been reduced by 43% while bonuses in the investment banking arm, where year-on-year profits were down by 50%, have been reduced by 58%. Mr Hester said it was "quite right" that bonuses had been reduced to reflect performance. But he said the remaining bonus levels were justified because the bank's overall performance last year had been "strong"....Read more here--: RBS Bonuses: Stephen Hester Defends Payouts Amid Banks £2bn Losses