Jump to content
House Price Crash Forum
Sign in to follow this  
Confounded

They Are Using Bank Bonuses To Restore Confidence!

Recommended Posts

It seemed strange how they did not impose strict rules on the bonuses of bankers or even tax them punitively, it is incredible but they are using bank bonus coupled with accountrickery profits to restore confidence that we are indeed heading back to normal.

This could back fire terribly in a few years. :ph34r:

Share this post


Link to post
Share on other sites
Shame to couldn't work out how they got this money. By typing barclays redundancies into google brings up everything you need to know. The thing is, what happens when you can no longer lay anyone else off?

This is the trap they are setting themselves in the US with the earning being "better" than expected, when the cost cutting stops where next? To be honest they are probably just glad to have had nearly 6 months of stability, the next round is going take a lot of people by surprise.

Share this post


Link to post
Share on other sites
This is the trap they are setting themselves in the US with the earning being "better" than expected, when the cost cutting stops where next? To be honest they are probably just glad to have had nearly 6 months of stability, the next round is going take a lot of people by surprise.

But at theat point someone will have made a tidy profit.

Short term profit is all that counts. This share rally could have legs yet.

Share this post


Link to post
Share on other sites
It seemed strange how they did not impose strict rules on the bonuses of bankers or even tax them punitively, it is incredible but they are using bank bonus coupled with accountrickery profits to restore confidence that we are indeed heading back to normal.

This could back fire terribly in a few years. :ph34r:

The truth is that the Barclays results are poor for real banking...it is only investment banking making a profit (currently)

Share this post


Link to post
Share on other sites

I appreciate the points but the main reasons for the thread was to highlight how they are using the fact High bonuses are still being paid as a subliminal message to the masses that things are returning to normal. 6 months ago you would have thought it would be political suicide to allow the bonus culture to continue. But at the G20 in March they collectively realised they are fighting a war in which psychology is the only thing between us and failure (fundamental offer no support). You can not let $52 trillion of debt based on fanciful bubble valuation correct in the time frame it naturally wants to.

http://www.youtube.com/watch?v=sJNiMFFRu0g

In my posts in 07 when there was a lot of discussion about the validity of the VI indices on house prices I argued they would be used in the stabilization of the market rather than to heap pain. I did not see the posting more than a 30% peak to trough drop despite expecting 50+ in reality. The way they introduced the possibility of rise in Feb this year when I personaly believe there was zero chance this was the case in the figures the BBC said don't get excited but house prices rose last month, they then slipped in a few more which again I believe had zero validity to them but was sufficient to get the ball rolling with those willing to believe. Since then I believe the more recent rises are statistically natural as people took the bait.

We are in an economic war of immense severity, I find it interesting analysing the techniques used to minimise the damage.

Share this post


Link to post
Share on other sites
Guest KingCharles1st

Why can't they introduce large scale city sackings to restore confidence to the general public...?

Edited by KingCharles1st

Share this post


Link to post
Share on other sites
Why can't they introduce large scale city sackings to restore confidence to the general public...?

That will come if they fail to restart the system, they will have no choice but people will get more comfort in knowing things are returning to normal than if they saw the world they understood crumble around them.

Share this post


Link to post
Share on other sites

http://business.timesonline.co.uk/tol/busi...icle6737018.ece

The two British banking giants which turned down taxpayer funds during last year's banking bailout both posted multi-billion pound profits today for the first six months of the year, demonstrating their resilience in the face of the credit crunch and global recession.

Both Barclays and HSBC said that pre-tax first half profits hit £2.98 billion, representing an eight-per cent rise for Barclays but a 57 per cent plunge for HSBC - Europe's largest banking group - after a rise in bad debt charges to some £8.3 billion.

Barclays also saw a rise in bad debts from consumers in the US and UK but the overall group result was helped by a buoyant performance by Barclays Capital, its investment arm, which saw net income double to £4.2 billion for the period.

That success means BarCap's 23,000 staff are in line to see average pay and bonuses double to almost £200,000 for the full year if results remain on track - despite the risk of a public and political backlash so soon after the banking meltdown.

But John Varley, the Barclays chief executive, promised to act "responsibly" and was quick to point out that Barclays had not received any taxpayer funds in last October's bank rescue package.

He told BBC Radio 4's Today programme: "The subject of compensation is a hot topic and I understand that, and it is very important that we are sensitive to the views of citizens and indeed central bankers like Mervyn King [Governor of the Bank of England] on this subject.

"We do not make bonus payments at this point of the year. The year is not over - there are five months to go. We will make our decisions about variable compensation at the end of the year.

"When we do so, we will take guidance from the Financial Services Authority...we will take guidance from the Walker review on governance...so we are sensitised to this issue and we will behave responsibly."

John McFall, the chairman of the influential Treasury Committee of MPs, told The Times yesterday that banks which doled out big bonuses were failing in their social responsibility.

"Bonuses coming back online with a bang so quickly while we are still in recession will just not be understood by the public.

"Banks have a social responsibility here and it seems that they are not living up to it. It was the banking crisis which sent the country into a tailspin in the first place."

If Barclays Capital earmarks 53 per cent of its income for pay and bonuses, as it did this time last year, it will share out £2.2 billion among its staff.

Assuming Barclays repeats its first half profits in the second half of the year, this would hand an average of £191,300 to each of the group’s investment bankers for the year, nearly double the £100,000 of pay and bonuses they received last year.

According to research from the Centre for Economic and Business Research, a think-tank, bonus payments by all banks could hit £4 billion this year, up from £3.3 billion last year.

Unlike Lloyds and Royal Bank of Scotland, which were forced to turn to the British taxpayer to bailout their businesses and will report interim figures on Wednesday and Friday respectively, neither Barclays nor HSBC chose to take any public money.

However, all UK banks are under pressure from the Government to step up lending to businesses and high street customers, following growing concerns that lenders are still hoarding cash and refusing to pass on favourable borrowing costs to clients.

Last week, Alistair Darling effectively threatened Britain’s biggest banks with a competition inquiry should they fail to increase cheap lending to mortgage borrowers and small businesses.

Mr Varley said this morning that Barclays had lent £17 billion to UK businesses and individuals in the first half, well above the £11 billion target the bank had set itself for the year.

But in the retail arm, which provides high street services, profits tumbled by 61 per cent.

Total group profits of £2.98 billion were below analysts’ expectations of £3.5 billion. Barclays revealed that bad debts had jumped by 86 per cent to £4.56 billion while it recorded £3.5 billion in write-downs on credit losses.

Commenting on the "tumultuous events of the last two years," Mr Varley said it had been a "humbling experience".

He said: "Our strategy has helped us weather the crisis and we want our employees, customers and shareholders alike to continue to benefit from it over time."

Despite the fall in profits, HSBC, which gives its figures in US dollars, said that results were better than it expected at the start of the year in an “unprecedented†economic climate. Stephen Green, chairman of HSBC, said it was likely that “we have passed, or are about to pass†the bottom of the cycle in financial markets, but he also warned: “The timing, shape and scale of any recovery in the wider economy remains highly uncertain.â€

HSBC’s US consumer lending business in the US - which has been devastated by the credit crunch and is being wound down by the bank - posted a $2.9 billion (£1.7 billion) loss for the period. But the bank said that bad debts were rising at a slower rate than expected after efforts in previous years to cut down on higher risk loans. HSBC also benefited from record investment banking profits of $6.3 billion, more than double the level of 2008.

The bank committed £15 billion for new mortgage lending in the UK, of which £6.7 billion was lent during the first half of the year.

HSBC was one of the first major players to come back into the market to support first-time buyers and its estimated share of new lending has more than doubled to 9.7 per cent.

Part-nationalising some banks was always going to have this effect.

McFall as usual is claiming it's all the banksters fault, whilst he personally bent over for them all on our behalf as they plundered our economy.

Varley is sticking two fingers up and doing a 'loadsamoney' in our collective faces.

None of the politicians dare mess with these guys. They own them. Balls deep.

This is straightforward theft just like before. Stealing our money before coming back to us to bail them out as they inevitably will at some point. It seems 'long-term' for a bankster = 6 months tops.

Share this post


Link to post
Share on other sites
Guest DissipatedYouthIsValuable

Banking bonuses have restored confidence to bankers.

Share this post


Link to post
Share on other sites

hardly a mention of those pesky writedowns, tickertape only & intermittent at that, it would appear. <_<

everyone I speak to say's their financial advisors are recommending financial shares & generally that ALL shares have bottomed. So they are piling back in at amateur level. :ph34r:

Share this post


Link to post
Share on other sites
None of the politicians dare mess with these guys. They own them. Balls deep.

This is straightforward theft just like before. Stealing our money before coming back to us to bail them out as they inevitably will at some point. It seems 'long-term' for a bankster = 6 months tops.

Spot On. +10

Share this post


Link to post
Share on other sites
http://business.timesonline.co.uk/tol/busi...icle6737018.ece

Part-nationalising some banks was always going to have this effect.

McFall as usual is claiming it's all the banksters fault, whilst he personally bent over for them all on our behalf as they plundered our economy.

Varley is sticking two fingers up and doing a 'loadsamoney' in our collective faces.

None of the politicians dare mess with these guys. They own them. Balls deep.

This is straightforward theft just like before. Stealing our money before coming back to us to bail them out as they inevitably will at some point. It seems 'long-term' for a bankster = 6 months tops.

...did Barclays or HSBC take taxpayers money .?...not to my kowledge....in fact these two Banks should be making a lot more than their latest declarations ....their poor lending on the retail and corporate side seems to be their problem...it is time to split the High Street and International Banking away from the Investment side so that each does not cover for the other.... <_<

Share this post


Link to post
Share on other sites
Guest UK Debt Slave
http://business.timesonline.co.uk/tol/busi...icle6737018.ece

Part-nationalising some banks was always going to have this effect.

McFall as usual is claiming it's all the banksters fault, whilst he personally bent over for them all on our behalf as they plundered our economy.

Varley is sticking two fingers up and doing a 'loadsamoney' in our collective faces.

None of the politicians dare mess with these guys. They own them. Balls deep.

This is straightforward theft just like before. Stealing our money before coming back to us to bail them out as they inevitably will at some point. It seems 'long-term' for a bankster = 6 months tops.

I just got a 1% pay rise. I suppose I should feel lucky seeing as many will take a pay cut or worse, lose their job

Couple that with the pathetic return we are getting on savings and the 'record bonuses' the bansters are still paying themselves and you just wonder why the hell people still bother to get up in the morning and go to work. It's an absolute disgrace. It's my first day back in the UK and back at work for 3 weeks. I feel like throwing in the towel and just walking away from this madness.

Share this post


Link to post
Share on other sites
Never let the truth get in thr way of a collective rant.

...agreed ..it's all rabble rousing by the likes of McFall to divert the flack away from Nulabour and his friend the real culprit ...Gordo ....remember he admits he doesn't do numbers ...just 'History' ....yes , History, is what he should be....and Banks like RBS and HBOS should be broken up and sold off to repay the taxpayer as soon as possible...I'm sure Lloyds would appreciate a 'get out of jail card' now..!... <_<

Share this post


Link to post
Share on other sites
Never let the truth get in thr way of a collective rant.

Alll banks make money thanks to the regulatory system giving them an effective oligopoly. They then use this market dominance... very little to do with being clever or entreprenurs. Therefore because of their priviliged position given by the state their bonuses should be regulated

Share this post


Link to post
Share on other sites
Alll banks make money thanks to the regulatory system giving them an effective oligopoly. They then use this market dominance... very little to do with being clever or entreprenurs. Therefore because of their priviliged position given by the state their bonuses should be regulated

Exactly!! It's effectively a state sponsored fleecing of citizens.

I would pay 10 pounds a month for an "organization" that never ever leveraged any money. All it did was take money from my employers. Allow me to add money or take money out, no overdrafts etc.. Just holding my money. The "organization" would have to have a capital-adequacy ratio of 100%. Therefore there could never be a run on the bank. It could make loans/investments only from it's profits gained from running the service, not from leveraging my savings or my debts.

Why isn't there anything like this now? I'm sure it would be really popular ( a bit like an organic/fair trade bank brand).

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.