Whaddaya think the real story is with Goodwin's pension

[TheBramble]

Well, all pensions have at least one string. You need to be alive to receive it…

If I was Fred, I’d keep away from Stockwell tube station and try very hard not to look like a Brazilian. (that’s the nationality, not the, the er…)

 

[Splitlink]

Split, I was being facetious !
Richard

Oh, well! That's all right, then

Split

 

[case777]

A CEO whose company loses 24 billion, the largest loss in British corporate history and you are in favour of him receiving 640,000 quid pension, the argument being that it is only peanuts in comparison?

I do not understand what is going on with the British public, these days. Well, they say that every country has the government it deserves.

This is how the country works.

The rich people are there to take all of the money, and do none of the work.
The middle class people are there to do all of the work, and pay all of the taxes.
The poor people are there to scare the **** out of the middle class people and keep them to keep turning up to those jobs.

 

[Technically Fundamental]

If the bank is paying him out of operating profs then whats the problem?
Government bailed out the banks blah blah blah. When they offload their interests in a few years they (and the taxpayer) should make a gain.
Lets watch what they do with the funds AFTER this bailout. The questions I'd be asking are what's happening when we get teh money back and how much is the investment currently valued at. In my opinion, the government is basically paying scapegoats to take the heat off whatever the hell it is they're up to at the moment.

 

[anley]

Govt is as usual playing to the media.

Fred will keep his pension, little or no chance of anyone taking it away from him. And if they try to then that will be a very tough legal case for them to win. Rich men with high priced lawyers are generally hard to beat.

Personally I like the bankers. love their arrogance in sticking 2 fingers up at everyone else. And before anyone attacks me, look in the mirror because if you were in their shoes 95% chance you'd have had your head as deep in the trough as anyone else..........

 

[TheBramble]

If the bank is paying him out of operating profs then whats the problem?

Operating profits? They've just made a £24bn loss.

Government bailed out the banks blah blah blah. When they offload their interests in a few years they (and the taxpayer) should make a gain.

In what way will the taxpayer gain specifically?

 

[ian]

The Grassy Knoll...

Anyone with a brain knows this controversy about Goodwin's pension is being stage managed, so what do you reckon the end game is?
[/LIST]

Thoughts?

His Knighthood. It's about Fred Goodwin getting to keep the 'Sir'.

He is using the pension money as a bargaining chip to retain his Knighthood. He certainly doesn't need £650k per yr but when you are a player in the social circles which he clearly moves in having tons of money don't have the same ooh-ahh factor as being a Knight.

At the weekend Peter Mandleson was on Sky news and made, what I interpreted as, a veiled threat to Goodwin regarding his conduct in the matter.

The Government only want votes, the public don't care about somebody's knighthood, they care about some rich bank manager taking their money though.....

I think the Gov could probably manage to take his knighthood from him much easier than try to take his pension so, IMHO, It's deal time!

On a more serious note, I'm down £100 today...Bummer.

 

[Technically Fundamental]

Operating profits? They've just made a £24bn loss.

In what way will the taxpayer gain specifically?

It's a book loss. They're writing off "assets". No business can run at a 25 billion loss on operation. They basically trimmed their balance sheet of its over-valuation - the difference between the true value and the math boffin cooked up value of americas sub prime/foreclosed loans that they held - through the P&L. Most people offloaded their shares and the government slapped up 40 odd % of the merged company at less than £1 per share. How much do you think they will be worth in 3 four years? The country has basically invested in the banking sector. All the money is being managed by a company specifically set up for this purpose (Ironically one of the people in charge is a sacked former bank boss lol.) so on paper, the tax payer will benefit from any return made on the investment. As long as it exceeds inflation anyway. Worst case scenario there should be some money tucked away for a rainy day to pay for another illegal oil war.

Thats what I've learned so far anyway. Probably a lot more to it.

 

[fifty2aces]

It's a book loss.

Are you one of those traders who doesn't close a trade when it's offside because paper losses aren't "real" losses?

 

[Splitlink]

Are you one of those traders who doesn't close a trade when it's offside because paper losses aren't "real" losses?

There is something in what Aaron says. This bank is in such a bad shape that, as the government is heavily invested in it, it makes sense to "lose" as much as it possibly can, right now, and get it over with.

 

[Technically Fundamental]

Are you one of those traders who doesn't close a trade when it's offside because paper losses aren't "real" losses?

No I'm an accountant lol.

Also not closing an offside short on the dow (which I knew would freefall) from Friday afternoon netted me a 58% roi.

What they're doing is writing off as much as they can. The shares are bottomed out already so they dont have to worry about shareholders etc and the government has basically pledged the largest business loan in history.

Something just hit me too. Gentrification is a big issue in America and due to the amount of bank foreclosures, by proxy, the government now owns a very large stake in the houses of the poorest people. Maybe Warren Buffet masterminded this all hahahaha.

I wonder what the UK govt now controls? I doubt they care about US properties (which are dirt cheap in comparison to here)

Maybe it is all political. There are just too many variables and too many individuals involved. UK either has too many players or is extremely difficult to sus out.

 

[Technically Fundamental]

Anyone with a brain knows this controversy about Goodwin's pension is being stage managed, so what do you reckon the end game is? A few theories:

1. Push through badly worded legislation allowing pensions to be stolen, then steal everyone else's pension - this is my preferred theory
2. Distraction from government's mismanagement
3. Warning to everyone else about to collect a big pension
4. Implement wage controls
5. Revenge for something or other Goodwin did

Thoughts?

steal back civil servants pensions and push the general public into private pensions run by insurance companies through a series of adverts with hart davis and that black newswoman.

this extra income may make them insure banks money again... i dunno i always chat shizen

 

[ian]

Knighthood no more?

Looks like Sir Fred is finally playing ball - or else!