Archives for posts with tag: bonuses

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Commission chairman Andrew Tyrie and Tory MP lays out several legislations to stop bank bosses “reckless misconduct”. He suggested that bank bosses receive either a jail sentence or up to 10 years postponement of their bonuses and pension claim. We, the public would even go a step further and stop them from getting any bonuses since they are responsible for bankrupting a bank or other illegal activities. Although they all denied any involvement but it is and was their job as a chief executive. What else are they there for?

At the financial crash in 2007 the public were told at that time it is a “Credit Crunch” which was accepted for a while. After just a short time it emerged that it was the bank bosses and financiers in the City being responsible. They were paid for a “shocking and widespread malpractice”. Not one was jailed or heavily fined. The Libor scandal when it was finally exposed, after years of practice, which surely a number of people were aware of and should have been responsible, not one was jailed or heavily fined or banned from the industry. They were even given a very a golden handshake when eventually resigned due to pressure from the public. The banks were fined heavily but this will eventually be paid by the taxpayers.

Mr Tyrie suggested: “Under our recommendations senior bankers who seriously damage their banks or put taxpayers’ money at risk can be expected to be fined, banned from the industry, or, in the worst cases go to jail. That has not been the case up to now. This deals with some of the senior people who many feel got off lightly last time and for whose mistake we are still paying.”

Mr Tylrie issued a 527 pages report pointing out the completely laps of standard which is too widespread to be acceptable. He also requested that not only the bankers have to change their way of practice. He demands actions on regulators and government because both are responsible for the decline of standard. The commission of MPs and peers calls for a great overhaul of top pay, with City regulators given new power to cancel pension rights and payoffs for bosses of bail-out banks.

This is the most sensible suggestion made for a long time and hopeful it will be enforced. However, looking back at the truck record of the government it is doubtful it will be passed in the House of Commons and Lords.  It is also well overdue in view of all the scandals revealed which costs the taxpayers billions of pounds at a time of great economical pressure.

Already it has been included that there will be no retrospect.

Sir Fred Goodwin who ruined the Royal Bank of Scotland receives a £342,000 a year pension for life.

James Crosby chief executive of HBOS receives £580,000 retirement.

John Cridland, director general of the  CBI, points out that there are tough criminal sanction already law in the UK. If they are they certainly were not enforced. In the last few years there were o the biggest scandals in bank’s history yet the bank bosses received golden hand shakes which was totally wrong, of course.

For a start the public demanded for years to stop the sky high bonuses. The top bankers are all earning around £1million a year which is more than adequate.  Many time David Cameron was pressure to step in and stop these bonuses especially now where the economy is in a terrible situation.  Mr Cameron kept promises but as most of his promises were never kept. He pointed out that it would take time to bring in a law through Parliament.

This whole situation was only brought about since Margaret Thatcher de-regulated the banks and ever since their salaries rose astronomically. Then also the bonus started.  As before the banks of Britain had a great respect and their names were respected all over world.  Companies were investing in British banks because of it.

When the public realised their demand will not be med by David Cameron and his government they formed a group called OCCUPY. This group started to camp in the city but then was moved on and put their tents up in front of St Paul’s’ cathedral. They endure harsh weather day and night to make their point.  Since the place in front did not belong to the city of London the government could not do much about it. They approach the Dean of St Pauls but he agreed with OCCUPY and there was quite noise about till the Dean of St Pauls resigned.  David Cameron soon found a way and in no time the court brought out a LAW for OCCUPY to be moved.  So much so for disagreeing with sky-high bonuses being paid to bankers and city financiers.  It was amazing how quickly this law could have been brought thought but not a law against bonuses paid.

Now a report in Daily Mirror shows that again and still huge bonuses are being paid. In spite of bankruptcy, rigged libor, mis-selling PPI and scandals about money laundering by criminal cartels for which top banks were heavily find their debts are paid by taxpayers.  It is incredible to say the least and unacceptable that the Chief executives of these banks are paid at least £1million bonus after such scandal which cost the banks a fortune.

Again David Cameron and his government who practically owe these banks because of the taxpayers’ money invested do nothing and still does not stopped it. All you read about that the public and shareholders are putting pressure on these executives have so much decency to return the bonus.  Even if they are willing to drop the bonus there is still a regulation for a so called long-term bonus which again will be paid by taxpayers.

To summon it up These chief executives are receive around £1m salary, a bonus of  about £2 to £3million, a long-term bonus which surely must be also start at £1million and upwards plus huge dividends from shares given to them as part of their contract while most of their banks went bankrupt and held up by taxpayers’ money.  The economy being in a dreadful state and yet bankers and city boys take millions out without trying to improve the economy  and even fiddle the libor, mis-selling PPI, and money laundering  for criminal cartels.

If somebody cooks the book in a company they are instantly dismissed. These people were involved in huge criminal activities and do not get dismissed and if they due to public pressure they walk away with millions of pounds as a golden handshake plus super pension.