Political interference in banks such as RBS will lose the public millions of pounds in the long run, a senior Conservative has suggested.

His comments came as Lloyds, which is 40% owned by the taxpayer, announced massive losses of £3.5 billion for last year.

RBS, another effectively state-owned banks owned, also announced loses earlier this month.

Alongside announcements of multi-million bonuses at both institutions there have been calls for as crackdown on payments at the banks.

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