Lloyds Share News (LLOY)

A fresh row over City bonuses is set to engulf ministers after it emerged last night that 200 executives at Lloyds, the partly state-owned bank, are set to receive one-off payments worth up to 80% of their annual salaries. They will receive the money for integrating Lloyds with HBOS, which has led to more than 11,000 job losses at the combined bank since January, the Times reports.Meanwhile, Royal Bank of Scotland has signalled that it will succumb to pressure to pay its high-flying investment bankers substantially less than rival institutions amid an escalating row with the government. The bank is hoping to avoid a high-stakes showdown after it was forced to give the Treasury the final say over the total size of its bonus pool as a condition of signing up to a scheme that will insure £240bn in toxic assets, the FT reports.The Treasury was wrong-footed by the banking crisis, privately judging that Royal Bank of Scotland was "reasonably strong" less than one week before the bank was rescued with £37bn of secret government loans, according to a National Audit Office report, published today, into the Government's handling of the crisis. The NAO adds that the total exposure of the Government to banks through capital injections, loans and guarantees is now £846bn and the total cash outlay has reached £131bn, the Times reports.The Telegraph adds that the Treasury paid £107m of taxpayer cash to City firms for their assistance over the past two years, according to figures uncovered by the National Audit Office. Although it expects the banks to pay back £100m of the fees, it admits that, so far, not a penny has been reimbursed. Alistair Darling will next week set out a pre-Budget report that will increase taxes on the wealthy and funnel scarce resources into boosting the economy, while deferring tough new measures to cut Britain's £175bn deficit. Darling has decided it is too early to announce a substantial fiscal tightening leaving him open to criticism that he has yet to devise a credible deficit reduction plan, the FT writes.Tesco is planning scores of new supermarkets across Britain before a proposed clampdown that would restrict its ability to expand. The country's largest retailer has lodged nearly double the number of planning applications as its two largest rivals combined, according to data passed to the Times. The intense planning activity comes as ministers discuss new rules that would limit new store openings by locally dominant chains.The value of UK commercial real estate debt in default or in breach of key lending agreements more than doubled to about £30bn in the first six months of the year, adding pressure on the banking sector, a survey has revealed. De Montfort University, which compiles the most comprehensive study of the sector, will on Friday say that banks are beginning to deal with the massive £224bn of outstanding debt to the real estate sector, the FT reports.The managing director of BGC Partners accused of unlawfully poaching 10 staff from rival Tullett Prebon has admitted he "technically" induced two brokers to breach their contracts. Tony Verrier, who joined BGC from Tullett in January after a period of "garden leave", gave evidence in the High Court that he only tried to recruit former colleagues after starting his new job at the inter-dealer broker. But he admitted that Tullett staff gave him indications about their department's revenue and salaries, as he considered which brokers to target, the Telegraph reports. AB Foods' Primark arm was embroiled in a new row over the treatment of sweatshop workers today as shareholders gathered to celebrate record profits at the budget clothing chain. According to new research by charity War on Want, workers stitching Primark clothes in Bangladesh earn so little that they cannot eat properly, and many end up "malnourished," the Independent reports.Mitchells & Butlers' board on Thursday won the backing of one of its institutional investors in its public feud with Joe Lewis, the pub operator's biggest shareholder, which has seen the billionaire currency trader's two board representatives ousted. Standard Life Investments, which has a 2.8% stake in M&B, issued a statement throwing its weight behind the board, the FT reports.The auction of Camelot, the National Lottery operator, took a significant step forward last night after it emerged that Royal Mail had bowed to pressure from fellow shareholders to sell its 20% stake in the business. The decision means that all five shareholders have now agreed to divest their stakes, simplifying the sale process and boosting the chances that Camelot will fetch a price at the top end of the mooted £300m to £400m range, the Times reports.Sir John Gieve, the former government mandarin who was in charge of financial stability at the Bank of England, is joining GLG, the hedge fund, The Times has learnt. Sir John, 59, will advise the London-based fund on the inner workings of Whitehall at a time when politics are looming large in the business world. He has kept a low profile since February, when he resigned as Deputy Governor at the Bank after three years in the job.