Hester: RBS "will be ready to sell by 2015"

Huge losses, bonus caps, and too much government interference.

RBS posted a huge loss today - a pre-tax loss of £5.17bn.

Operating profits were in fact up: £3.46bn in 2012, up from £1.82bn the previous year, the highest since its bail-out in 2008 - but charges from 2012's smorgasboard of scandals brought that right down.

The news came just as EU officials agreed to put a cap on bankers bonuses as early as next year - bad news all round for RBS.

Speaking on the Today programme this morning, RBS boss Stephen Hester said that bankers pay "needs to be in line with contribution."

He said: "I don't think bankers should be treated as special creatures."

"The most important thing for business certainty is a level playing field... As we know the financial crisis was a period of excess in many areas...that's what we're cleaning up for now."

The clean-up is not RBS's only problem though. As the government has a large stake in it you get the impression RBS isn't quite sure what its  priorities should be: should it play to the commercial interests of its minority share-holders, or invest in small businesses, as the government is pressing it to do? There seems to be a lack of communication between government and bank, and in the BBC interview today Hester was clearly champing at the bit for a sell-off.

"We are doing everything we can to facilitate a sale", he said. "I think that RBS will be ready to be privatised in the next couple years. It will be ready to sell by 2015".

"Privatisation is coming further into the agenda of the government and we welcome that."

It will be up to the government to decide the date of the sell-off though - likely to be another point of contention between government and bank.

 

RBS posted a huge loss today Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn

All the recent polling suggests Andy Burnham is losing more votes than anyone else to Jeremy Corbyn, says Diana Johnson MP.

Tom Blenkinsop MP on the New Statesman website today says he is giving his second preference to Andy Burnham as he thinks that Andy has the best chance of beating Jeremy.

This is on the basis that if Yvette goes out first all her second preferences will swing behind Andy, whereas if Andy goes out first then his second preferences, due to the broad alliance he has created behind his campaign, will all or largely switch to the other male candidate, Jeremy.

Let's take a deep breath and try and think through what will be the effect of preferential voting in the Labour leadership.

First of all, it is very difficult to know how second preferences will switch. From my telephone canvassing there is some rather interesting voting going on, but I don't accept that Tom’s analysis is correct. I have certainly picked up growing support for Yvette in recent weeks.

In fact you can argue the reverse of Tom’s analysis is true – Andy has moved further away from the centre and, as a result, his pitch to those like Tom who are supporting Liz first is now narrower. As a result, Yvette is more likely to pick up those second preferences.

Stats from the Yvette For Labour team show Yvette picking up the majority of second preferences from all candidates – from the Progress wing supporting Liz to the softer left fans of Jeremy – and Andy's supporters too. Their figures show many undecideds opting for Yvette as their first preference, as well as others choosing to switch their first preference to Yvette from one of the other candidates. It's for this reason I still believe only Yvette has the breadth of support to beat Jeremy and then to go on to win in 2020.

It's interesting that Andy has not been willing to make it clear that second preferences should go to Yvette or Liz. Yvette has been very clear that she would encourage second preferences to be for Andy or Liz.

Having watched Andy on Sky's Murnaghan show this morning, he categorically states that Labour will not get beyond first base with the electorate at a general election if we are not economically credible and that fundamentally Jeremy's economic plans do not add up. So, I am unsure why Andy is so unwilling to be clear on second preferences.

All the recent polling suggests Andy is losing more votes than anyone else to Jeremy. He trails fourth in London – where a huge proportion of our electorate is based.

So I would urge Tom to reflect more widely on who is best placed to provide the strongest opposition to the Tories, appeal to the widest group of voters and reach out to the communities we need to win back. I believe that this has to be Yvette.

The Newsnight focus group a few days ago showed that Yvette is best placed to win back those former Labour voters we will need in 2020.

Labour will pay a massive price if we ignore this.

Diana Johnson is the Labour MP for Hull North.