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Brown Appalled By Bank Bonuses

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http://news.bbc.co.uk/1/hi/business/8255482.stm

Prime Minister Gordon Brown says he is "appalled" that some financial firms are continuing - or even extending - their bonus culture.

In a BBC interview to mark a year since the collapse of Lehman Brothers, he said global action was needed to sort out "unfinished business" at banks.

Cleaning up the sector, including global regulation was needed, he added.

President Barack Obama has also warned Wall Street bankers that they cannot go back to their old ways.

'Counterproductive'

Mr Brown said he was determined that world leaders meeting in Pittsburgh next week would "complete the unfinished business" of cleaning up banks - including establishing rules on bonuses.

Leaders were examining how limits could be imposed on bonuses as a percentage of profits or in revenues.

But in an interview with BBC business editor Robert Peston, he reiterated that global action was essential so that one country was not "isolated" by its stance on remuneration.

"I'm appalled that some institutions are already wanting to return to the old ways; that some of our financial institutions are taking action which, in my view, is not only wrong but counterproductive in continuing, indeed extending the bonus culture of the past," Mr Brown said.

"Some of our financial institutions are taking action which, in my view, is not only wrong but counterproductive in continuing, indeed extending the bonus culture of the past.

"Now I will want an agreement - because we're talking about banks in other countries as well as banks in Europe - at the G20."

Light touch

The collapse of US investment bank Lehman Brothers, soon after troubled rival Bear Stearns was sold with Federal Reserve intervention, marked the start of a near-total collapse of the financial system that required unprecedented global intervention to keep it solvent.

Mr Brown argued that the UK was the first to recognise the need for stronger regulation of the financial services sector in the aftermath of the Lehman's collapse.

But this followed years of him pushing for light-touch regulation and non-intervention while as chancellor and later prime minister.

"It's true the mood of opinion in Britain was that we needed less [regulation] and not more. Now we've found we need more," he said.

"We should all have been supervising more. The general public have got to feel that when they go to a bank that bank can be trusted. They've got to know that when they put money in that financial institution, that the money is safe and secure. And they've got to know that the bankers or financiers they are dealing with are taking risk, but not reckless risk.

"That's what we're putting into the rules and regulations that will govern the banking system for the future."

Mr Brown's comments came as a BBC World Service poll showed that 67% of people in 20 countries wanted more regulation and running of national economies.

Overall, the survey suggested that people in developed countries were less satisfied than those in developing countries.

Responsible banking

Mr Brown refused to blame Britons for the level of rising personal debt during his time as chancellor and prime minister, saying the vast majority of debt had been the result of the "legitimate aim" of people trying to buy a home.

However banks needed to "be more responsible about how they approach people" when it comes to offering credit," he added.

Stabilising the banking sector had seen an increase in personal savings, he said, adding: "Consumers themselves will want to be more prudent in the way they deal with their own finances."

(would have posted earlier, but I was having trouble starting a new topic and site was stalling)

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Am I missing something here. The banks are owned by taxpayer, meaning the government has a controlling stake. Why does Gordon Brown need to go and have a meeting to discuss this. Simply phone yup the directors of the banks and say "No more bonuses, if they dont like it give them their P45's".

Does the Manager at your local Tescos have to have meetings all round the world with other Tescos managers to discuss which items are on special offer.

This is incompetancy on a whole new level.

Hey Brown whos running this country, you or the bankers. Second thoughts dont answer that you will only need to fly off somewhere for a public consultation in order to answer it. We all know the answer btw. The Bankers.

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"Gordon Brown told me he does not like borrowing" - Peston.

:o

This is all a big joke isn't it ? They are all sitting somewhere having a laugh about all this. Must be.

Oh it is ok now. Back to the new number 1 story. Elton John is not allowed to adopt a child from Ukraine. That is more like it. All this economic stuff is nonsense.

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Am I missing something here. The banks are owned by taxpayer, meaning the government has a controlling stake. Why does Gordon Brown need to go and have a meeting to discuss this. Simply phone yup the directors of the banks and say "No more bonuses, if they dont like it give them their P45's".

Exactly. Just appoint a new Board of Directors who would veto any bonuses, and renegotiate Contracts of Employment. They do it with every other fecker else, why are bankers immune?

More pointless posturing.

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In other news, Hugh Hefner tells the Church of the virginal maid that he was appalled to discover half naked women on his ranch.

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The banksters must be laughing all the way to the bank-rupt with the prospect of a new government returning the public-owned banks to the private sector.

Hideous bonuses and trebles all round ! :huh:

Now Gordon, be a good boy and ask your chum Tony about how to be awarded with a lucrative wbank job.

Now sit in the naughty bankster chair !!

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Guest sillybear2

So why doesn't he close the Asset Protection Scheme that is underwriting all this risk-free arbitrate and generating huge bonus pools by mis-pricing risk? Actions speak louder than words!

If they're capitalist enough pay bonuses then they're capitalist enough to live without state guarantees.

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Exactly. Just appoint a new Board of Directors who would veto any bonuses, and renegotiate Contracts of Employment. They do it with every other fecker else, why are bankers immune?

More pointless posturing.

But then if he did that where would he stop ?

"Em, so I am now in charge of lending for RBS and the rest of them ?"

It is a tough one. However the less control our Broon has over the Banks the better IMO. Tough one to swallow but so be it.

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He's deflecting responsibility and playing victim again.

As a coward that's what he does.

So he won't do anything unless everybody else agrees to do it for fear of the banksters p1ssing off to wherever he thinks they'll all p1ss off to. At least, that's what he's been told to do.

He's weak, cowardly and mendacious. He avoided every question put to him by Peston and Peston of course let him get away with it.

RP "Did you not worry about the rising household debt whilst you were Chancellor?"

GB "I personally have never been in favour of taking on alot of debt" ('cause I have a fat salary, pension and taxpaying mugs house me for free)

Avoid question; talk b0llocks, Peston let's him. Totally staged as per usual.

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Guest sillybear2
He's deflecting responsibility and playing victim again.

As a coward that's what he does.

So he won't do anything unless everybody else agrees to do it for fear of the banksters p1ssing off to wherever he thinks they'll all p1ss off to. At least, that's what he's been told to do.

The truth is frighteningly simple, he doesn't understand anything about economics.

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The truth is frighteningly simple, he doesn't understand anything about economics.

Absolutely true. I have said this for years. The guy is actually THICK as PIGSH1T. There's no other explanation for his total incompetence whilst Chancellor, let alone PM.

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Don't kid yourself - he knew all these bonuses were being paid. The fact is he didn't care. In fact he spent much of the time patting himself and the top investment bankers on the back for the so caled 'economic miracle' that between them they had created.

What he hadn't woken up to was that it was all a sham, which proves what an economic genius he really is (not!!!). Someone of exceptionally limited intelligence could have guessed that the party couldn't go on forever, so its worrying that someone running the country couldn't work this out.

As for bank bonuses I don't think that forcing banks to limit bonuses is the right way to go. (I'm sure some leftie on here will disagree no doubt). Let's not forget that Financial Services is our main industry now - like it or not we have very little to fall back on if we bash the hell out of the banking industry. There are very effective ways to control bonuses rather than simply blocking banks from paying them. If you force banks to hold much higher capital and monitor their risks more dilligently the profits will come back down to sensible levels and so will the bonuses accordingly. (And we get an effective end to easy credit, rather than more political spin about how great the govt is for blocking some director from collecting his enormous bonus).

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I wonder whether the government could get away with manufacturing another way to take billions of cash from these banks into its coffers WITHOUT these bonuses (and the 60% tax (which is what it near enough ends up) on them).

Lee Harvey Oswald, Sirhan Sirhan, Mark Chapman, even Dylan Klebold - we have work for you .....

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I'm appalled by Brown, full stop.

What the hell has it got to do with him how much people are paid? He seems to have forgotton that the bankers were acting out Labour Government policy. "Lend as much as possible against property so that everyone thinks they are rich and we keep getting re-elected". And of course the sheeple were happy to take the money. Now he just wants to blame the banks but go back to the same way of lending. What a dick.

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Nationalise the entire banking system. Take 40-50 senior executives out in London Wall. Kneel them down. Shoot them in the back of the head.
just after taking about 300 MPs (some of them are actually OK), 30,000 senior civil servants, about half a million public sector nonjobbers and 6 million lazy fkcuers in the UK.

As always, do you know what those executives actually do for a living, or do you just get your information from the internet ? Do you mind me asking, what do you do that makes you so certain that these people deserve a death sentence ?

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Nationalise the entire banking system. Take 40-50 senior executives out in London Wall. Kneel them down. Shoot them in the back of the head.

Yup. Turn ALL banks into non-profit [break even] utilities. All employees on fixed, low, wages.

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