December 28, 2009

Aled Blake assesses the most challenging year in the history of the UK banking sectorUK BANKS retained their status as public enemy number one in 2009 after a year beginning with bailouts and grovelling apologies – and ending with a £550m tax on bonuses.The industry came under constant fire while families and firms faced rising dole queues and the impact of the country’s longest ever recession – made worse in many eyes by the excesses of the once-feted financial sector.

The National Audit Office put the public tab for propping up the banks at £117bn, with the taxpayers’ overall exposure through various guarantee schemes an even more staggering £850bn.As the man in the street struggled with the mind-boggling sums, the loathing was pinned on hate figures such as former Royal Bank of Scotland boss Sir Fred Goodwin – the villain of the piece who holed up on the French Riviera when details of his £700,000 a year pension emerged.