Politicians appear united over latest £1bn Banker greed.
- 8 February 2009 11:1014934Reports that the Royal Bank of Scotland, who have just received £20bn in government payouts, or to put it another way, have just received £20b in payouts from you and me, are about to pay £1billion of this out in bonuses to failures....has caused uproar in chattering class circles. Yes these bonuses are for people who failed us and failed the system. It has become commonplace for these bonuses to be paid come what may. In the old days you got a bonus in many jobs if you did well, but not anymore and certainly not in banking. You get a bones now in banking even if you are the Eddie the Eagle of banking circles. Enough is enough. Stop this lunacy!
"Party over for Banks" said Osborne. Yes George Osborne made an appearance on the Andrew Marr show and was aghast, as is everybody, at this latest suggested RBS payout. The Conservatives are calling for a more moral approach to high finance. Nice idea. But will it work. Where are the moralists?
Alistair Darling was also on the show expressing horror at RBS but can anyone stop them doing just what they like. The government now own 70% of RBS as I understand it, but still appear to have little say in the boardroom.email: dover7@msn.com - 8 February 2009 14:0214946i don't think that the bank people realise what happens on the outside of their cossetted and comfortable world.
they seem to have a strong sense of their own superiority, morals do not enter the equation.
unfortunately they now realise that they can fail as badly as they like, the taxpayer will come to their aid. - 8 February 2009 16:3314953Darling made a dreadful impression on the programme - aggressive, defensive, making up for a lack of real intelligence by talking louder and repeating himself - a tell-tale giveaway of the puppet-politicians. Osborne presented better, but it is barely credible that Tories are appalled by badly behaved bankers........!!!!
- 9 February 2009 08:5515006I think a tale of greed has also come from the Home Secretary, Jackie Smith - claiming over £116,000 of tax-payers' money for staying wth her sister !
Shouldn't she be setting an example, not following the crowd with her nose in the trough.
Roger - 9 February 2009 09:4715011Yes its an unfortunate development as she was very impressive and very pleasant recently In Dover... there are some postings Roger about this new Jacqui Smith situation under the Jacqui Smith in Dover thread.
Once again the 'rules were not broken' but how often have we heard that tired and lame quote. Its clearly easy for one and all to drive a coach and horses through these lax rules, so its the rules themselves that are at fault, they need a massive overhaul and no mistake.email: dover7@msn.com - 9 February 2009 21:5915069on the news tonight that barclays have stopped bonuses to their executive directors, even though they have not gone
to the taxpayer with a begging bowl.
will other banks, less well run, learn any lessons from this?
fiscal responsibility still has one enclave then. - 10 February 2009 18:2315113Having been away I am a bit behind on this one.
I have not heard what Lloyds execs are doing but seeing the only reason they need a bail-out is to contend with the problems of absorbing HBOS it would be interesting to see if a distinction is being drawn between them and others.
The basic rule though should be that bonuses have to be justified by performance and should not be a right. Individual execs may have achieved required performance in their areas of responsibility but should not suffer a loss because of others who have failed in theirs. For that reason I can see that their can be some justification, for some, at RBS for instance, but certainly not for those responsible for the losses.
