Saturday, 8 January 2011

A bank bonus anyone?

The banking bonus issue is about to kick off again. Britain's big five banks want to give multi-million pound bonuses to their chief executives, despite the fact that the UK banking system is barely profitable.

The story was the top article on the Financial Times website. The piece contained a large number of sympathetic quotes about the plight of Britain's best paid public sector workers.

One senior banker said "We don’t want to see a repeat of last year when no one felt able to take their bonuses”. Actually, I think we do, Mr senior banker. The vast majority of people in Britain find it hard to understand why their state-owned banks, which were bailed out with their money, should be paying bonuses. Other public sector workers have to put up with minimal pay increases, state-owned bankers should do likewise.

Another banker argued "Now is a good time to ensure that top executives are appropriately remunerated so that they are not lured abroad or into hedge funds." This tired old argument is wheeled out every year. If they feel underpaid,they should resign from the public sector and take a risk working in the private sector.

8 comments:

Anonymous said...

Let's get the backlash going now

Mark Wadsworth said...

"Actually, I think we do, Mr senior banker."

I actually LOL'd at that one. Keep up the good work.

chefdave said...

Yep, their pay is a political issue now.

If they wanted the public to keep out of their financial affairs they should have kept out of our pockets.

Alice Cook said...

Chefdave,

Thanks for the comment

That is my view exactly. If they wanted to pay private sector salaries they shouldn't have demanded public money.

Alice

Anonymous said...

chefdave: "they should have kept out of our pockets."

As someone who works at an American bank, the sense of entitlement, is extraoridinary.

One fellow of my aquaintance repeadedly complains that not having a bonus for the last three years they had better give him one this year. This fellow is reputedly on a salary of £80K+.

But the real issue is the bankers and the politicians are hand in glove. Elsewise the politicians would have let RBS, HBOS and in the US Citi go to the wall.

We need banks, we don't need these banks.

Rossa said...

There have been some reports that Osborne back pedalled on these bonuses because of the amount of extra tax he is supposed to receive.

Just another way to recycle taxpayers' money on the carousel.

Then I read that a lot of the bonuses will be paid in shares, so no tax then Mr Chancellor, at least not for a longer period of time. Not quite the windfall he had in mind, oh dear!

jams o donnell said...

At the are, in effect, public servants they can have bloody pay freeze too. If not then perhaps they can head off to Switzerland

Anonymous said...

Looks like the bonuses will go thru. Hard to believe.