Nice economic model, if you can get it, though the banks always get it. Remember how the apologists told us that it was critical for the banks to retain talent or else? Well? It looks like that talent isn’t as impressive as they told us. Outside of the banks and government, everyone else knew that.

Bailed out Royal Bank of Scotland reported losses of £1.1bn for 2010 – but still plans to pay out bonuses of £950m to its bankers.

The loss is an improvement on the loss of £3.6bn a year ago and the record breaking £24bn loss in 2008, when it was rescued by the taxpayer.

RBS returned to the black in the final quarter even though it was hit by a £1.1bn charge for its Irish banking unit, Ulster.

The proportion of revenue the bank uses to pay its investment banking staff rose to 34% from 26% a year ago.