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Bankers Set To Receive 100% Payrises

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http://www.bloomberg.com/apps/news?pid=206...id=a3Fwr1RG_CJw

Banker Salaries May Double Under FSA’s Bonus Rules (Update1)

By Caroline Binham

Aug. 12 (Bloomberg) -- British bankers’ base salaries may double as a consequence of a regulatory crackdown on bonuses in the wake of the financial crisis that saw some of the U.K.’s biggest lenders acquired or nationalized, lawyers said.

Once a banker always a banker :lol:

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Reality set to bring bankers' pay down to Earth with a thump:

There does seem to be an inverse correlation between banker's pay and real wage growth..

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Reality set to bring bankers' pay down to Earth with a thump:

Great and interesting graph that.

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http://www.bloomberg.com/apps/news?pid=206...id=a3Fwr1RG_CJw

Banker Salaries May Double Under FSA’s Bonus Rules (Update1)

By Caroline Binham

Aug. 12 (Bloomberg) -- British bankers’ base salaries may double as a consequence of a regulatory crackdown on bonuses in the wake of the financial crisis that saw some of the U.K.’s biggest lenders acquired or nationalized, lawyers said.

Once a banker always a banker :lol:

It's already happening, my wife received a 10% payrise months ago to compensate for the closure of the performance bonus scheme. So she's now guaranteed what she had to work for before (she's only an office pleb for RBS)

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It's already happening, my wife received a 10% payrise months ago to compensate for the closure of the performance bonus scheme. So she's now guaranteed what she had to work for before (she's only an office pleb for RBS)

Likewise anecdotal from a couple of friends, one got promoted and instead of an extra 10k and a bigger bonus, he got an extra 50k and the same bonus.

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Likewise anecdotal from a couple of friends, one got promoted and instead of an extra 10k and a bigger bonus, he got an extra 50k and the same bonus.

UBS increased salaries bybetween 30 and 50%, depending on seniority

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And yet on the same day the government published its [bLATANT LIES] response to the epetition............

http://www.number10.gov.uk/Page20313

Wednesday 12 August 2009

Bank-Greed - epetition response

We received a petition asking:

We the undersigned petition the Prime Minister to prevent bonuses or over-inflation salary increases being paid to employees of banks where the government now has a majority shareholding

Details of Petition:

The government should use its power as a majority shareholder to prevent banks in receipt of government (taxpayer) funding from paying bonuses and over inflation salary increases to employees.

A total ban on bonus payments should be made a condition of any government loan or bail-out.

Read the Governments response

Thank you for your e-petition.

Following exceptional instability in the global financial markets, the Government took decisive action in October 2008 to implement a comprehensive set of measures to stabilise the financial system and support the long-term strength of the economy. As part of its investment, the Government agreed a range of conditions with banks in receipt of public money, including in respect of executive remuneration. Strict conditions were imposed on directors’ pay at banks that participated in the recapitalisation scheme.

On 26 February, the Government announced the implementation of its Asset Protection Scheme (APS), under which the Treasury will provide protection against credit losses on particular assets in exchange for a fee. Alongside undertaking to increase lending to credit-worthy borrowers, all participating institutions will have to develop a sustainable long-term remuneration policy. They will therefore need to implement a policy consistent with the detailed principles in the Financial Services Authority’s (FSA) Code of Practice on Remuneration Policies. The FSA has recently completed a consultation period of its Code and will issue a response shortly to have it in place for firms’ 2009 remuneration review processes. The overarching aim of this Code is that remuneration policies must be consistent with effective risk management and it will apply to large banks, building societies and broker dealers.

In the Government’s paper Reforming Financial Markets, published in July 2009, the Chancellor asked the FSA to provide an annual report on remuneration practices, including compliance by firms with the new Code. This report will assess whether remuneration practices are likely to lead to a build up of systemic risk, and make recommendations for action if this is thought to be the case.

UK Financial Investments Ltd (UKFI), a company that is wholly owned by the Government, is managing the banks in which the Government is a shareholder on a commercial and arm’s length basis. Its overarching objectives are to protect and create value for the taxpayer as shareholder, with due regard to financial stability and acting in a way that promotes competition. UKFI is overseeing the remuneration conditions attached to subscribing to the Government’s recapitalisation fund and the APS, and has worked to ensure that the banks offer incentives based on the Government’s principles on remuneration and to protect the interest of the taxpayer as shareholder.

The Royal Bank of Scotland (RBS) and Lloyds Banking Group (LBG) have significantly altered their bonus arrangements in respect of 2008 performance. RBS has announced that there will be no bonuses or pay increases made to staff associated with the major losses suffered in 2008 and that board executive directors will receive no bonus for 2008 performance and no pay increase in 2009. Where bonuses are paid they will be deferred until 2010 and released in annual instalments and also be subject to forfeiture if future losses arise in relation to their 2008 activities. LBG has restructured its bonus arrangements for 2008 along the same lines as at RBS; therefore there will be no discretionary bonuses paid in 2009, except to junior staff, and there will be no annual free share award.

These remuneration policies are consistent with four basic principles which the Government has set out: rewards for failure are not appropriate; bonus payments should be based on long-term sustainable performance; bonuses should be designed to shape future performance and thus be subject to appropriate claw back; and the regulator will take bank remuneration policy into account when supervising a bank.

*In other words, we will bullsh1t the thicko population, twist some rules around, but never fear, we will make sure you fat cats still get millions, which we will rob from the people, whilst keeping them subjigated, and poor.

Edited by Dan1

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It's already happening, my wife received a 10% payrise months ago to compensate for the closure of the performance bonus scheme. So she's now guaranteed what she had to work for before (she's only an office pleb for RBS)

Does she like being referred to as 'only an office pleb'?

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Does she like being referred to as 'only an office pleb'?

She's a Project manager, being an engineer I've made my feelings known what I think of her proffesion.

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UBS increased salaries bybetween 30 and 50%, depending on seniority

More like 50% to 100%.

Many other banks already did this as well, which I did mention a month ago and got laughed at for saying it.

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She's a Project manager, being an engineer I've made my feelings known what I think of her proffesion.

Yeah but I bet she can spell.

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Yeah but I bet she can spell.

now she's a witch? come on guys, leave her alone.

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More like 50% to 100%.

Let's see what happens to banking wages when financial profits fall 3- or 4-fold back to historical (i.e. real and sustainable) levels:

financial_profits.PNG

post-21200-1250085799_thumb.png

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Let's see what happens to banking wages when financial profits fall 3- or 4-fold back to historical (i.e. real and sustainable) levels:

I will bet you such a stupidly large amount of money that doesn't happen. But it clearly makes you feel better to convince yourself of it.

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I will bet you such a stupidly large amount of money that doesn't happen. But it clearly makes you feel better to convince yourself of it.

I think banks should pay them selves 1000 times more. theyve earned billions... frack the shareholders...anyone would think it was their business.

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I will bet you such a stupidly large amount of money that doesn't happen. But it clearly makes you feel better to convince yourself of it.

Less variable compensation = more sacked bankers ;)

I will bet you a stupidly large sum of money on that

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Let's see what happens to banking wages when financial profits fall 3- or 4-fold back to historical (i.e. real and sustainable) levels:

I know this is simplistic but................

average mortage is say 120k

say 5million mortgages in UK

say 3% profit on interest for bank/bs

that's 18 billion alone. Why can't banks make a large profit relatively risk free without indulging in dodgy stuff?

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Less variable compensation = more sacked bankers ;)

I will bet you a stupidly large sum of money on that

Maybe. But the reality is that people love to put things next to each other on a graph like that one posted above and say "correlation=causation". Some people need a lesson in statistics. The reality is that banking profits are more linked to the explosion of derivatives than the level of debt in the economy, and the notional of derivatives is not going to collapse anytime soon.

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I know this is simplistic but................

average mortage is say 120k

say 5million mortgages in UK

say 3% profit on interest for bank/bs

that's 18 billion alone. Why can't banks make a large profit relatively risk free without indulging in dodgy stuff?

Sorry for double post but 3% is WAY WAY WAY more than banks make on mortgages and yet lots of people here already complain. Profit margins are more like 0.50-0.75% on mortgages iirc and that is assuming "normal" defaults.

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How much money can you spend when you're hanging upside down from a lampost by your testicules? :unsure:

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