Bankers' Earnings Surge Towards Pre-Crash Levels

[interestrateripoff]

http://www.guardian.co.uk/business/2010/may/13/bankers-pay-bonuses-surge

Pay and bonuses in the City are surging back to their pre-crash levels despite widespread criticism of the Square Mile and the banking industry, which was rescued by the taxpayer 18 months ago.

The steep rise in earnings is likely to put pressure on the coalition government to impose a clampdown on City pay practices, which the Liberal Democrats in particular attacked while in opposition.

Guardian analysis of data from the Office for National Statistics shows that bankers were paid £8.5bn in bonuses in the four months to April, compared with £7bn during the same period last year.

There was also a jump in pay across the industry of £1bn to £12bn as bankers shifted some of their earnings away from bonuses to avoid the former Labour government's bonus tax.

The result of the pay and bonus increases took the combined earnings for the bonus season to £20.5bn compared with £24bn at the height of the boom in 2007.

Investment banks traditionally pay staff bonuses in the run-up to the end of the tax year in April. For the last three years the Guardian has analysed ONS pay data to show how bonuses make up a large proportion of City pay. In many instances rewards amount to millions of pounds compared to an average of almost £7,000 across the industry.

Last year Vince Cable, now the business secretary in the new administration, said the City had shown "a complete lack of awareness of the extent of the financial crisis, their role in creating it and the extent to which they are ultimately answerable to the taxpayer".

Lib Dem peer Lord Oakeshott said of the new data tonight: "This is the unacceptable face of capitalism. The coalition agreement promised to bring forward proposals for robust action to tackle these practices."

A spokesman for the British Bankers Association said the bulk of workers in the industry received on small bonuses or no bonus at all. "For those who do receive a bonus, this is based on their contribution to the business during the year," he said. "The financial services sector makes a huge contribution to the UK economy and to keep that world-leading position you have to employ the best people – and that means paying a competitive remuneration package."

Recruitment consultants in the City report that appointments has gained speed in recent months as investment banks poach staff from their rivals.

One consultant said the demand for staff had increased in recent months in response to the return of mergers and acquisitions and major fundraising exercises by major corporations.

Nice to see that govt bailouts have helped ensure financial sector earnings have recovered. This is what we pay taxes for.

[VeryMeanReversion]

I think the new government needs to be careful to avoid getting the blame for the upcoming austerity.

They should of course blame as much on Gordon but more importantly, go after the fraudsters in the City that build up the debt pyramid with fake ratings to sell onto investors. The more bankers they throw in jail, the longer they will have to fix the problems.

This will give them two layers of shielding although I suspect even that will not be enough.

And another thought, since almost all of the investment banks are making big profits in a zero sum game, the mug can only be the tax payer. We need our financial sector to rip everyone else off around the world, not us!

VMR.

[corevalue]

So, we need to add about another 3p on the basic rate of income tax to pay the wages and bonuses of our banking sector and it's mighty works. That'll be popular, I suspect.

[non frog]

I think the new government needs to be careful to avoid getting the blame for the upcoming austerity.

They should of course blame as much on Gordon but more importantly, go after the fraudsters in the City ....

The new government are the fraudsters in the city.

[THE BALD MAN]

I think the new government needs to be careful to avoid getting the blame for the upcoming austerity.

They should of course blame as much on Gordon but more importantly, go after the fraudsters in the City that build up the debt pyramid with fake ratings to sell onto investors. The more bankers they throw in jail, the longer they will have to fix the problems.

This will give them two layers of shielding although I suspect even that will not be enough.

And another thought, since almost all of the investment banks are making big profits in a zero sum game, the mug can only be the tax payer. We need our financial sector to rip everyone else off around the world, not us!

VMR.

How long can the payer cntinue to subsidise the banksters? What is also important is that we see the many crooks in the system prosecuted.

[okaycuckoo]

I think the new government needs to be careful to avoid getting the blame for the upcoming austerity.

They should of course blame as much on Gordon but more importantly, go after the fraudsters in the City that build up the debt pyramid with fake ratings to sell onto investors. The more bankers they throw in jail, the longer they will have to fix the problems.

This will give them two layers of shielding although I suspect even that will not be enough.

Problem is that prosecution of bankers makes the Square Mile a lot less attractive for the con artists - for god's sake, the Brits believe in justice!?

Another fine balancing act they've got us into!

[bear call spread]

Recruitment consultants in the City report that appointments has gained speed in recent months as investment banks poach staff from their rivals

Can confirm this first hand, really busy right now (i just moved between investment banks after recent bonus) many jobs out there right now, but its always like this around bonus time. Things are certainly picking up now on the employment front.

[1929crash]

http://www.guardian.co.uk/business/2010/may/13/bankers-pay-bonuses-surge

Nice to see that govt bailouts have helped ensure financial sector earnings have recovered. This is what we pay taxes for.

And vince Cable, who had some harsh measures in mind, has been sidelined by wee Georgie Osbourne, who is the bankstas' friend. :angry:

[newbie]

The new government are the fraudsters in the city.

The son of a banker and the son of a stockbroker aren't going to wage war on the City. They won't be invited around for Christmas.

[wonderpup]

The son of a banker and the son of a stockbroker aren't going to wage war on the City. They won't be invited around for Christmas.

Either they take on the Banksters or they will be destroyed as they try to enforce their 'austerity' measures against a background of huge payouts in the City- interesting dilemma here for the tories- do they do their masters bidding or save themselves from the enraged population who are forced take a massive hit in living standards while seeing the city boys make out like bandits.

[Cogs]

[Pindar]

Novel use of the word "Earnings".

[Britney's Piers]

The way things are going, we are leading to another French revolution.

The bankers will need a Berlin wall erected around the City.