Bankers "need to join real world" minister says

[Bozza]

BBC News - Bankers 'need to join real world', minister says

Any views on this one?

I'm not sure I get it. We need to protect and nurture those who bring so much to our economy.

Don't pay the bonuses they deserve and they'll trot off to Geneva etc and pull money into those non-UK economies, and we might as well all start mining coal and opening up the mills again.

 

[looney]

I think the question needs to be asked are those getting bonuses the same people who lost billions?

Were is the transparancy and accountability?

The banks are to blame for not showing this and the Government is to blame for not requiring this imo.

 

[Monsieur Le Plonk]

BBC News - Bankers 'need to join real world', minister says

Any views on this one?

I'm not sure I get it. We need to protect and nurture those who bring so much to our economy.

Don't pay the bonuses they deserve and they'll trot off to Geneva etc and pull money into those non-UK economies, and we might as well all start mining coal and opening up the mills again.

Not sure they have brought so much to our economy recently but I'd agree that you need to nurture them so that they can pay back what they lost and maybe a bit more on top.

 

[pork pie]

BBC News - Bankers 'need to join real world', minister says

Any views on this one?

I'm not sure I get it. We need to protect and nurture those who bring so much to our economy.

Don't pay the bonuses they deserve and they'll trot off to Geneva etc and pull money into those non-UK economies, and we might as well all start mining coal and opening up the mills again.

There may be a handfull who would fall into that catagory, but according to the TV this morning over 5000 bankers will get over £1.0million in bonuses this year! A year when the banks have failed to support UK businesses.

 

[El Presidente]

The banks have a fantastic business model as they have made themselves too big to fail.

Make profits and they pay bonuses
Make losses and taxpayer picks them up.

Regulate them and they threaten to go elsewhere
Don't regulate them and they show the governance spine of a jellyfish

 

[Gwylan]

If these people made so much money, why did the government have to bail out the company?

I think Vince Cable is right - call their bluff and let them work somewhere else. I can see the job interview now.

"Now Mr Smith, what did you do in your last job?"

"I was personally responsible for losing £78m of the bank's money in a single year and contributed greatly to us having to be bailed out by the government"

 

[User removed 4]

If these people made so much money, why did the government have to bail out the company?

I think Vince Cable is right - call their bluff and let them work somewhere else. I can see the job interview now.

"Now Mr Smith, what did you do in your last job?"

"I was personally responsible for losing £78m of the bank's money in a single year and contributed greatly to us having to be bailed out by the government"

I know lots of people at RBS , who dont work in the credit derivative part of the business, who made millions for the bank last year, they're getting called daily by headhunters looking to place them elsewhere, if their "bluff is called" and they get f***ed for their bonus, they will go, and the government will be holding large amounts of stock in a bank where the majority of money making talent has left , and who cannot attract anybody worthwhile to work for them.

The moral of the story is dont just blindly jump on the outrage bus until you know what the f*** you're talking about.

 

[Lokki 7]

If these people made so much money, why did the government have to bail out the company?

Governments the world over have been bailing out industries in trouble for years, it's part of their mandate. Unlike the likes of British Leyland though, the banking sector has returned to profit within months and is now paying back the money plus huge interest. BoA/Merrills announced today that it is repaying the US govt over $40bn for example.

If the govt hamstings the banks we now all own, then they will not be able to compete on a global stage and our shares will be worthless. It would be like us fans buying the Albion then insisting that all the players work for the national average £20k a year. How do you think the team would fair under those circumstances?

 

[scotjem]

Are there really thousands of equivalent jobs elsewhere ? Would RBS really suffer if they had to replace some of these supposed high-flyers ?

One of the lessons of the financial crisis is to seriously question certain perceived wisdoms.

 

[mcshane header]

Governments the world over have been bailing out industries in trouble for years, it's part of their mandate. Unlike the likes of British Leyland though, the banking sector has returned to profit within months and is now paying back the money plus huge interest. BoA/Merrills announced today that it is repaying the US govt over $40bn for example.

If the govt hamstings the banks we now all own, then they will not be able to compete on a global stage and our shares will be worthless. It would be like us fans buying the Albion then insisting that all the players work for the national average £20k a year. How do you think the team would fair under those circumstances?

Are you telling us that our defence IS earning more than the national average?

 

[Lokki 7]

Are you telling us that our defence IS earning more than the national average?facepalm:

Look on the bright side, at least they are not picking up their win bonuses.

 

[adrian29uk]

I know lots of people at RBS , who dont work in the credit derivative part of the business, who made millions for the bank last year, they're getting called daily by headhunters looking to place them elsewhere, if their "bluff is called" and they get f***ed for their bonus, they will go, and the government will be holding large amounts of stock in a bank where the majority of money making talent has left , and who cannot attract anybody worthwhile to work for them.

The moral of the story is dont just blindly jump on the outrage bus until you know what the f*** you're talking about.

Please tell me how their bonuses will effect my bank account if these people did not get their bonus?

 

[Juan Albion]

I'd say that if there are 5,000 of them earning bonuses over a million then the skills they have can't be that rare.

 

[User removed 4]

Please tell me how their bonuses will effect my bank account if these people did not get their bonus?

Sorry but your post doesnt make a lot of sense, it wont affect your bank account obviously, what will happen, as ive said in my post, the people that are making the money for RBS will leave if they dont get their bonus, and they wont be able to attract other money makers because it will be known that you dont get rewarded at RBS.

 

[Gwylan]

I know lots of people at RBS , who dont work in the credit derivative part of the business, who made millions for the bank last year, they're getting called daily by headhunters looking to place them elsewhere, if their "bluff is called" and they get f***ed for their bonus, they will go, and the government will be holding large amounts of stock in a bank where the majority of money making talent has left , and who cannot attract anybody worthwhile to work for them.

The moral of the story is dont just blindly jump on the outrage bus until you know what the f*** you're talking about.

Governments the world over have been bailing out industries in trouble for years, it's part of their mandate. Unlike the likes of British Leyland though, the banking sector has returned to profit within months and is now paying back the money plus huge interest. BoA/Merrills announced today that it is repaying the US govt over $40bn for example.

If the govt hamstings the banks we now all own, then they will not be able to compete on a global stage and our shares will be worthless. It would be like us fans buying the Albion then insisting that all the players work for the national average £20k a year. How do you think the team would fair under those circumstances?

I was exaggerating for effect and I'm aware that there are people at RBS who were not responsible for the losses.

But my point is that the banking bonus system was in itself partly responsible for the banking collapse. Not only did the bonus culture itself lead to unacceptable risks but there was rather too much of this "pay me what I'm worth or I'll go to another bank" - which led to bonuses becoming more inflated.

I do believe that the time is now ripe to look at that culture, not only because the government is now a majority shareholder at RBS but because there have been a massive number of redundancies lately and there's a ready made workforce to step in (there will also be a lot of public support for a let's-get-tough-on-bankers approach). The government has some leeway to get tough with this culture and if that means calling the bluff of some of these bankers, then so be it.

 

[Lokki 7]

Please tell me how their bonuses will effect my bank account if these people did not get their bonus?

Sorry to but into bushys question, but very quickly, these people generate and pay a huge amount of revenue to the govt (directly and indirectly). If we don't pay them and they all bugger off then either taxes rise or spending falls to make up the shortfall. Or probably both. If taxes rise you will be worse of financially. If spending falls you will probably also be worse off in terms of standard of living. You may not like it but it is true.

Anyway I'm off home as the Bentley is on a double yellow..

 

[adrian29uk]

I just cannot believe they are moaning about bonuses when we have people who are losing jobs everyday.

 

[User removed 4]

I was exaggerating for effect and I'm aware that there are people at RBS who were not responsible for the losses.

But my point is that the banking bonus system was in itself partly responsible for the banking collapse. Not only did the bonus culture itself lead to unacceptable risks but there was rather too much of this "pay me what I'm worth or I'll go to another bank" - which led to bonuses becoming more inflated.

I do believe that the time is now ripe to look at that culture, not only because the government is now a majority shareholder at RBS but because there have been a massive number of redundancies lately and there's a ready made workforce to step in (there will also be a lot of public support for a let's-get-tough-on-bankers approach). The government has some leeway to get tough with this culture and if that means calling the bluff of some of these bankers, then so be it.

gwylan, there have been massive redundancies in the credit derivatives sector, not particularly "massive" redundancies in other banking sectors, and the point you seem to be struggling with is the fact that while the govt may be majority shareholders in RBS, they're NOT majority shareholders in the banks the moneymakers will all jump ship to, do you really want to drive away all the best talent in a bank the government ie US are massive stockholders in ?

 

[Lokki 7]

I do believe that the time is now ripe to look at that culture, not only because the government is now a majority shareholder at RBS but because there have been a massive number of redundancies lately and there's a ready made workforce to step in (there will also be a lot of public support for a let's-get-tough-on-bankers approach). The government has some leeway to get tough with this culture and if that means calling the bluff of some of these bankers, then so be it.

And this is the point. The govt can dictate what happens at RBS. What about all of RBS's global competitors that the govt cannot touch? They will leave RBS for dead and then your shares are worthless. Who wins? Unless there is a global solution, getting tough with RBS alone helps no one except maybe Labour come next May.

 

[Lokki 7]

I just cannot believe they are moaning about bonuses when we have people who are losing jobs everyday.

I'm not saying that they are not ***** for moaning btw.