Reports have confirmed that as many as 23,000 investment bankers across Barclay's branches have been handed handsome pay rises over the last few days, in a move which may enrage authorities, who have been criticizing similar actions of banks, even further. The development comes right as the bank revealed that Bob Diamond, its high profile board director, has sold 5 Million Pounds worth of shares.

Mr. Diamond is in-charge of running the Barclays Capital investment banking division, which on Tuesday wrote to all the staff informing them of the rise in earnings, and these are being awarded just as the Government is seriously looking at imposing a 50% tax on bonuses.

With the move, the tension between the banks, which have been awarding amazingly high payouts and bonuses to its employees and top management, and the Government, which has continually been criticizing these institutions of not acting in accordance with the demands of the current financially difficult times, is bound to increase. Also, Barclays' lower paid employees at its high street operations are not going to be too happy.

Although Barclays did not need any Government funds, like the Royal Bank of Scotland and Lloyds Banking Group, it did benefit mainly from the liquidity that was injected into the system by the Bank of England.

Speculations are that some of these pay rises are as high as 150%, although the bank is trying its best to downplay the information.