Barclays are proud of being one of the banks that didn't go running to the government to borrow back in autumn of 2008.
Instead they went to Middle Eastern backers.Today they have announced massive increases in profits up 92 per cent at £11.6b
As with last year its top people have rejected bonus payments but nevertheless it will pay £1.5bn in bonuses for 2009 and a further £1.2bn are to be paid over three years.
Critics argue though that these profits are only the result of the government's general guarantees to the banking sector.If other banks had collapsed then Barclay's would have gone as well.
How moral are these profits and bonuses?
Vince Cable has already been on air making the very point and with this morning's news that the banking sector is still not lending at appropriate rates to the commercial sector,he called for the bank to be broken up into separate investment and commercial banks, and to pay a fee for the government guarantee it has enjoyed since the start of the financial crisis.
Showing posts with label banks bonuses. Show all posts
Showing posts with label banks bonuses. Show all posts
Tuesday, 16 February 2010
Saturday, 28 February 2009
One rule for one............
Following President Obama's announcement yesterday,Sam Coates makes this observation
A city friend with one eye on his bonus asks:
Should all the MPs who voted for the Iraq war give up their lavish pension pot because they failed to do a good enough job scrutinising the WMD claims before voting in its favour?
Monday, 9 February 2009
Bonus madness
Am I missing something here.Surely if you own a bank then you are entitled to tell it what to do.
Reading the various comment and analysis,I am not sure that is the case in the circumstances surrounding the news that RBS is set to pay out bonuses.
The Chancellor has said that he has talked with its chief executive Steven Hester and told him that nobody associated with its losses should be getting a pay out.
I fail to see how you distinguish between those that are and are not associated.
There is of course this argument that in order to maintain a thriving banking and financial sector we need to attract the best people.
Take a look at Mark Field's piece on Centre Right this morning in which he argues that
I agree to a certain extent but in these dire economic circumstances it is surely a prudent move to either defer or forgo these payouts.
As for the government simply responding to the arguments by setting up an enquiry well it smacks of a cover up pure and simply.Vince Cable has called it "a classic British establishment cover up".
Reading the various comment and analysis,I am not sure that is the case in the circumstances surrounding the news that RBS is set to pay out bonuses.
The Chancellor has said that he has talked with its chief executive Steven Hester and told him that nobody associated with its losses should be getting a pay out.
I fail to see how you distinguish between those that are and are not associated.
There is of course this argument that in order to maintain a thriving banking and financial sector we need to attract the best people.
Take a look at Mark Field's piece on Centre Right this morning in which he argues that
Our nation needs a thriving financial services sector. The spiritual home of the UK’s banking industry is in the City, but its importance as an employer and engine for economic growth extends throughout the land.
I agree to a certain extent but in these dire economic circumstances it is surely a prudent move to either defer or forgo these payouts.
As for the government simply responding to the arguments by setting up an enquiry well it smacks of a cover up pure and simply.Vince Cable has called it "a classic British establishment cover up".
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