Greedy p*gs

[Trader333]

Paul,
I don't think the people who have worked for banks and lost their jobs would agree !
But for the bosses who have helped themselves to huge bonuses, yes, e.g. Fred Goodwin.
As usual, it's the innocents who suffer, whilst the guilty walk free - and free from embarrassment as their egos are huge - and having unearned millions for failure is more than enough compensation for a little unwanted media attention.
Even so the likes of Applegate of Northern Rock have found themselves very highly paid jobs !
Richard

Richard,

I agree for the most part and it is the bosses getting the bonuses that is wrong.


Paul

 

[arabianights]

I blame zionism

 

[virtuos0]

The ignorance and hypocrisy of the public en masse never ceases to amaze me.

 

[Ambrose Ackroyd]

The ignorance and hypocrisy of the public en masse never ceases to amaze me.

That is a given, and probably the major reason why democracy produces incompetent governments who know sweet FA about banking etc. etc .

 

[robster970]

The ignorance and hypocrisy of the public en masse never ceases to amaze me.

Indeed. Some of the voting on Strictly is beyond belief.

 

[Pat494]

Of course Darling could slap a hefty tax on unearned bonuses ?
but then it's the shareholders who are footing the bill of bigger bonuses to compensate for tax.
Shareholders seem very weak when it comes to doing anything. The pension funds etc. control most businesses but wouldn't like to annoy their buddies on the boards of directors who are also on the remuneration committees of others. Can't upset the trough !!
The justification used to be that pay and perks had to keep up with the Americans.
Makes the minimum wage hardly worth getting out of bed for ? No incentive then little done.

 

[maiden22]

Tax the huge payouts to bankers.

Surely these are taxed? Presumably at 50% from next year, plus 1% NI and employer's NI (12.8% on top).

Good deal for the treasury - if the money wasn't paid out, it would be subject to corporation tax only.

 

[squall321]

I also think that it is a form of socialism to have bailed them out because in true capitalism there would be no rescue.


Paul

it's only socialism if hugo chavez does it. when we do it it's fine.

 

[chilltrader]

lord myners got paid out 30 million by gartmore. it's easy for him to say.

alternative is not to pay the talent, the bank stops making money, your tax £ erode in value as the shares are hammered and the bank ceases to function.

"Talent"???!!!

My @rse

Talent for what? Getting the economy into a tailspin? Holding the country to ransom?
Making a right mess of taxpayer funds?

Get rid of the muppets!!!!!

 

[chilltrader]

Let's face it, all the people who moan and groan about banker's bonuses would be happy to accept a fat bonus if they were lucky enough or rather, sufficiently talented to be rewarded with one.

I would suggest that there is a large element of jealousy involved here.

Leave the bankers alone................if a talented banker can make $ 50 million for his bank why shouldn't he get a slice of it ?

The very people who should not be complaining about this issue are politicians, greedy bastar*ds that they are.

Because the 50 million they make is false economy as the events of the last 2 years have shown. These banks just keep raiding each others coffers and show as trading profits. The real victim is the pension fund and taxpayer fund.

I find it real funny when people say "leave the b(w)ankers alone"

We probably should have, instead of bailing out their sorry butts!!!

Oh!.. so you want help when scr3wed up, but want to be left alone with the cream?!



Personally I feel Investment banks give absolutely no value to society and should be completely separated from Retail banking units. If the IB's survive on their own, then well and good, else ciao.

 

[gooseman]

"Talent"???!!!

My @rse

Talent for what? Getting the economy into a tailspin? Holding the country to ransom?
Making a right mess of taxpayer funds?

Get rid of the muppets!!!!!

Spoken like someone who knows sweet FA about how an investment bank works.

You want to know who is at fault? Look no further than one-eye in number 10 and his bunch of back-slapping cronies. I still remember THAT Mansion House speech...

So say we do let the "talentless" staff leave RBS; who then steps in? You don't pay enough nobody in the City would move there. That leaves the problem of who runs the books-I'm fairly certain my local plumber can't run a European swaptions book or a small cap delta-one equity book. People have plenty to say, much of it lacking substance and certainlt no concrete answers.

 

[counter_violent]

Considering that the taxpayer owns 70% of RBS...why not go the whole hog and nationalise it.

Correction....84%......and soon to be 100% if Dubai and other still toxic crap kicks off again.

 

[Ambrose Ackroyd]

It's only money.

Life is short.

If your pension is blown, find another way to fund your retirement.

Who TF cares anyway ?

 

[spreader_legger]

Is it really that difficult to run a European Swaptions book? Can't you train people up?
I've heard stories of so-called "blue collar" workers who have successfully made the transition into becoming star traders.

Spoken like someone who knows sweet FA about how an investment bank works.

You want to know who is at fault? Look no further than one-eye in number 10 and his bunch of back-slapping cronies. I still remember THAT Mansion House speech...

So say we do let the "talentless" staff leave RBS; who then steps in? You don't pay enough nobody in the City would move there. That leaves the problem of who runs the books-I'm fairly certain my local plumber can't run a European swaptions book or a small cap delta-one equity book. People have plenty to say, much of it lacking substance and certainlt no concrete answers.

 

[Pat494]

Fred the shred and the other overpaid morons didn't even follow the golden rule of banking which is :-

Don't lend money to those that can't repay it + interest

Not so hard to grasp surely ?

 

[gooseman]

Is it really that difficult to run a European Swaptions book? Can't you train people up?
I've heard stories of so-called "blue collar" workers who have successfully made the transition into becoming star traders.

who's going to train them? the cleaner?

 

[Ambrose Ackroyd]

who's going to train them? the cleaner?

Training would be carried out by Noel Edmonds at The Multi Coloured Swap Shop. :smart:

 

[Pat494]

These "top" people had the free run of the banks and there was virtually no supervision. The shareholders are pitifully weak and the pension funds are headed up by their buddies. In fact a licence to rip off the banks. "This Great Bank Robbery" was definately an inside job. They have been found wanting in integrity and are not only confident of getting away with it but seem sure they can continue unmolested.
Come on politicians - even though many of you have been caught misbehaving recently , are you really going to let these bank robbers just get off with it ? A great opportunity to redeem yourselves and probably get lots of election cred too.

 

[meanreversion]

As someone who spent many years trading at a variety of banks, I can assure you that the majority of bank traders are clueless. As an example, it was popular back in 1997 to go long USD/THB with the view that the peg would break (eventually it did and spot went from 25.00 to 50.00). However, what most spot traders overlooked was the roll cost, i.e. the overnight borrowing charge for being short THB.. rates went to 500 pct+ and many a spot trader was destroyed, mainly through blind ignorance.

This theme continues up to the very highest levels. One senior manager came back from a trip to Tokyo once and complained loudly that pizzas were stupidly expensive there, the economy was f-cked, etc. and promptly bought USD 100mio/JPY, only to be stopped out 2 pct lower the next day.

However, this misses the point. Many bank personnel have become fabulously wealthy, irrespective of whether their own activities actually made money for the bank. Fred Goodwin was simply doing what he had always done when he bought Amro, it's just that the numbers were bigger and this time it came unstuck. He didn't do anything "wrong" as such.. had the market continued upward he would have been lauded as a hero (as he was when he bought Natwest).

The heart of the issue is mis-incentivisation, or short-termism if you will. The authorities around the world are attempting to address this, but of course it's notoriously difficult.

Perhaps the best suggestion has come from our very own unswervin' Mervyn King, who argues for banks to be broken up.

Why not? Anyone who wants to take active risk should work at a hedge fund. Retail banks should handle deposits and loans. Then there would be all the investment banks, advising and generating fees. The current structure where a retail bank such as RBS leverages its deposit base to acquire a balance sheet twice the size of the UK GDP is simply not acceptable.

But are the bankers to blame? How could they make money by peddling 100 pct mortgages if no-one took them out? How could they explode their balance sheets with no-one noticing? Everyone shares some blame here. The public, who blithely assumed house prices would never come down.. the government/BOE for insufficient oversight. Most of all I blame Gordon Brown, who as I previously suggested, is a Soviet mole sent to destroy the UK.

 

[gooseman]

and bill clinton. glass-steagall for anyone?

saying the "majority" of bank traders are clueless is simply not true.