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Mikhail Liebenstein

Banking Piggies Squealing

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7945917/UK-banks-claim-FSA-pay-crackdown-puts-them-at-disadvantage.html

This complaint by the banks is nonsense. They'll be saying exactly the same in the US. And BTW what are they worried about if they are paid in shares rather than cash then surely they do really well in the long term - or is this an admission that its all a ponzi and they are actually insolvent or will see lower turnovers in  years to come?

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7945917/UK-banks-claim-FSA-pay-crackdown-puts-them-at-disadvantage.html

This complaint by the banks is nonsense. They'll be saying exactly the same in the US. And BTW what are they worried about if they are paid in shares rather than cash then surely they do really well in the long term - or is this an admission that its all a ponzi and they are actually insolvent or will see lower turnovers in  years to come?

Let the piggies eff off to US then. Bye bye.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7945917/UK-banks-claim-FSA-pay-crackdown-puts-them-at-disadvantage.html

This complaint by the banks is nonsense. They'll be saying exactly the same in the US. And BTW what are they worried about if they are paid in shares rather than cash then surely they do really well in the long term - or is this an admission that its all a ponzi and they are actually insolvent or will see lower turnovers in  years to come?

Not to worry-they can get another job. Oh wait, there is none. Bugger.

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The banksta's seem to have forgotton that they are now essentially public sector employee's, like dust bin men and environmental health officers. A total pay and recruitment freeze would appear to be in order!

Edited by Sir John Steed

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They argue that Britain's regulations have made it harder to recruit and retain top-quality staff.

Would this be the same talent pool that blew up those same banks in the recent past? Presumably Lehman had 'top quality staff' right up to the point it self destructed.

It's hard to take this bunch of welfare queens seriously when they start to talk about the 'quality' of their staff.

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Would this be the same talent pool that blew up those same banks in the recent past? Presumably Lehman had 'top quality staff' right up to the point it self destructed.

It's hard to take this bunch of welfare queens seriously when they start to talk about the 'quality' of their staff.

Absolutely, and keep ramming the point home:

List is public subsidies available to the banks:

1) Low 0.5% interest loads from the BoE and Fed.

2) Taxpayer subsidised payout for lending money obtained in 1) to the Government.

3) Pension contributions being tax free in effect covers the cost of annual pension charges - eg get you 40% relief, but the banks will nick it over 35 years charging 1% per annum. This is the same as LHA and landlords.

4) QE and Tarp - yes the banks have a load of worthless toxic assets, but don't worry the BoE/Fed/Treasury/Taxpayer etc will buy them off you at face value.

5) Direct bailouts, oh we are going bust, quick give us some money or we'll wipe out people saving.

The banks are the most unproductive, money wasting, over paid, theiving bunch of Civil service welfare queens ever to set foot on the planet.  Frankly I'd nationalise all of them, and seize the assets of all the current and former employees from the last 35 years.

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Would this be the same talent pool that blew up those same banks in the recent past? Presumably Lehman had 'top quality staff' right up to the point it self destructed.

It's hard to take this bunch of welfare queens seriously when they start to talk about the 'quality' of their staff.

I'm sure their staff are great quality, some of the brightest and hardest working in the country, trouble is they're in an environment where they have every incentive and opportunity (if not direct instructions) to lie, cheat, and put other people's money at immense risk. Ordinary people with ordinary consciences will do terrible things if you push the right buttons. We should have spent the last three or four years going through a truth and reconciliation deprogramming of society in general and the City in particular. Instead the government decided to give them even more money so they could carry on. Hey ho.

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It's worth remember that most of the investment banks wont be paying any tax in the UK for at least another 10 years, as they transfered all their losses to the UK operations and tax deducted the whole lot. In fact, many of the banks got a huge tax rebate that year because of it.

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I'm sure their staff are great quality, some of the brightest and hardest working in the country, trouble is they're in an environment where they have every incentive and opportunity (if not direct instructions) to lie, cheat, and put other people's money at immense risk. Ordinary people with ordinary consciences will do terrible things if you push the right buttons. We should have spent the last three or four years going through a truth and reconciliation deprogramming of society in general and the City in particular. Instead the government decided to give them even more money so they could carry on. Hey ho.

The problem is how to reconcile the 'rare talent' argument with the reality that these banks were driven over a cliff by the people involved. One might have at least have exepected the highly paid members of these outfits to refrain from taking down the institutions that employed them.

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Would this be the same talent pool that blew up those same banks in the recent past? Presumably Lehman had 'top quality staff' right up to the point it self destructed.

It's hard to take this bunch of welfare queens seriously when they start to talk about the 'quality' of their staff.

You have hit the hammer on the nail head. We are always being told to get the right people we must pay top dollar. Well a lot of them have been earning that for far too long, and look where it has got us.

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The problem is how to reconcile the 'rare talent' argument with the reality that these banks were driven over a cliff by the people involved. One might have at least have exepected the highly paid members of these outfits to refrain from taking down the institutions that employed them.

When your main form of pay comes in the form of a huge non-refundable cash bonus once a year while business cycles are on the order of 10-15 years, why would any employee care about the long term health of the bank? I think they were just making hay while the sun shines, especially the senior management. Were they crooks or were they incompetent? Given the size of Fred Goodwin's payoff, you'd have to say he was pretty damned competent (at extracting maximum cash from the system).

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Just read some of the comments, these people really are totally out of touch with reality. Their idea of wealth creation is to get 2 companies to merge, shed half of their collective staff, and share the spoils amongst themselves and the company directors.

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The problem is how to reconcile the 'rare talent' argument with the reality that these banks were driven over a cliff by the people involved. One might have at least have exepected the highly paid members of these outfits to refrain from taking down the institutions that employed them.

Why would they? They brought their banks down, and the state promptly paid off their bad debts, and very accommodatingly allowed them to get back to exactly the same culture of remuneration that created the problem in the first place.

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Just read some of the comments, these people really are totally out of touch with reality. Their idea of wealth creation is to get 2 companies to merge, shed half of their collective staff, and share the spoils amongst themselves and the company directors.

Yes, something like 75% of mergers result in lower value all-round, than if the companies continues separately. But suggesting that such activity should be the subject of more regulation - even if it is just that shareholder value must be demonstrated before the fees and bonuses are paid - is likely to got you burnt at the stake..

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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