Government pressure is taking hold in the midst of crisis at another major bank, as RBS announced today it reached a deal with the UK, its majority shareholder, to cut the total bonus pay by 90 percent to 175 million pounds ($247.5 million).

Bankers are facing a public outcry for their role in the credit crisis.

The UK government, which owns 70 percent of RBS, pushed the bank to keep bonuses at their legal minimum, according

Bonuses will be kept to the legal minimum. No discretionary cash bonuses will be paid this year for performance in 2008, RBS said in a statement.

The bank said it would be taking a fundamental review of it future payment policies