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Allied Irish Bank Renege On Bonuses

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Ireland's Finance Minister Brian Lenihan instructed Allied Irish Banks PLC to renege on nearly €40 million ($53.6 billion) of staff bonuses after public outcry over the impending payments at the state-supported bank.

The decision by Mr. Lenihan late Monday contradicted AIB's legal advise that it must pay the 2008 bonuses to 2,400 staff. Mr. Lenihan also cautioned that state support for AIB will be conditional on the bonuses being withheld.

http://online.wsj.com/article/SB10001424052748704694004576018863769586274.html?mod=googlenews_wsj

AIB has received a €3.5 billion state recapitalization and must raise another €9.8 billion by the end of February. The government is expected to end up with a stake of more than 92% in AIB, up from 18.6% currently.

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Ireland's Finance Minister Brian Lenihan instructed Allied Irish Banks PLC to renege on nearly €40 million ($53.6 billion) of staff bonuses after public outcry over the impending payments at the state-supported bank.

The decision by Mr. Lenihan late Monday contradicted AIB's legal advise that it must pay the 2008 bonuses to 2,400 staff. Mr. Lenihan also cautioned that state support for AIB will be conditional on the bonuses being withheld.

http://online.wsj.com/article/SB10001424052748704694004576018863769586274.html?mod=googlenews_wsj

AIB has received a €3.5 billion state recapitalization and must raise another €9.8 billion by the end of February. The government is expected to end up with a stake of more than 92% in AIB, up from 18.6% currently.

The bank was told it would have public funding withdrawn if the bonuses were paid.

'Renege' is such an ugly word.

Govts. are the 'Daddy' not the banks. Bankers and traders are about to learn a hard political lesson.

Litigation won't work. The Irish govt. acknowledge that this is restrospective.

The rubicon has been crossed. I'm suprised how little attention this is getting on HPC.

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...

The decision by Mr. Lenihan late Monday contradicted AIB's legal advise that it must pay the 2008 bonuses to 2,400 staff. Mr. Lenihan also cautioned that state support for AIB will be conditional on the bonuses being withheld.

...

Legal advice, what nonsense. Just an attempt to hide the true nature of the government, who can basically do exactly what they like. The government isn't constrained by the law, unless it chooses to be.

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I wonder how so many people managed to get a bonus at such a badly bust bank?

The directors must have breached their fiduciary duties to allow such a bonus regime to be put in place. Surely any sensible company only awards bonuses when the company is clearly in profit, after those bonuses have been deducted?

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I wonder how so many people managed to get a bonus at such a badly bust bank?

The directors must have breached their fiduciary duties to allow such a bonus regime to be put in place. Surely any sensible company only awards bonuses when the company is clearly in profit, after those bonuses have been deducted?

All that will happen, IMO, is that any bank subject to this sort of stricture will vastly increase basic pay for all that so-important 'top talent' they like telling us about.

The fact that they were spinning exactly the same line about 'top talent' bonuses way before that same TT screwed up so spectacularly, appears to be beside the point.

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All I can say is "at last".

Expect a rising fever pitch of calls for people here to do the same. If they can do it - why can't you. Grow a pair and just do it!

+1

That institutions that would be bankrupt if not for the taxpayer are still heaping largesse upon their employees is obscene, regardless of the usual justifications that the banks' defenders will raise.

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stand by for wage rises.

I'm not sure about that.

The owner (the government (the people)) isn't in the mood to hand out payrises and ultimately its their decision, not the board's.

Director of a bust bank is not the same as being a Director of a bank with reserves greater than the GDP of a small country.

Govts make the rules in the end.

The owner wants their money back.

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Ireland's Finance Minister Brian Lenihan instructed Allied Irish Banks PLC to renege on nearly €40 million ($53.6 billion) of staff bonuses after public outcry over the impending payments at the state-supported bank.

The decision by Mr. Lenihan late Monday contradicted AIB's legal advise that it must pay the 2008 bonuses to 2,400 staff. Mr. Lenihan also cautioned that state support for AIB will be conditional on the bonuses being withheld.

http://online.wsj.com/article/SB10001424052748704694004576018863769586274.html?mod=googlenews_wsj

AIB has received a €3.5 billion state recapitalization and must raise another €9.8 billion by the end of February. The government is expected to end up with a stake of more than 92% in AIB, up from 18.6% currently.

What's up with the dollar - is this using the unsupported blackmarket rate of $1,340 to 1EUR

printy printy

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But but... they can't do that, its in their contracts!!

The bankers will argue that this infringes on their Human Rights and it'll end up in the ECJ.

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He agreed the bonuses were "galling" especially to those suffering welfare cuts following last week's draconian budget.

Funnelling bailout money as bonuses to culprit and perpetrator bankers is "galling" to especially anybody with any sense of anything and not "especially to those suffering welfare cuts".

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The rubicon has been crossed. I'm suprised how little attention this is getting on HPC.

Blowing my own trumpet for a moment, I did post it last night. Stupidly though, I added it to a thread in the Current Tumbleweed Affairs section so it's little surprise that nobody noticed.

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Well thats marked Brian Lenihan card. No million pound consultancy job when he leaves office. Didn't any body tell him if you look after the banks when you are in office the banks will look after you when you leave office? Silly man.

edit to add this is what a more intelligent man would be doing once he left office.

Tony Blair's company 'to make £27m advising Kuwait on how to govern itself'

Read more: http://www.dailymail.co.uk/news/article-1338368/Tony-Blairs-company-make-27m-advising-Kuwait-govern-itself.html#ixzz187J18jlh

silly man

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I am worried about the bankers now leaving AIB because their wages aren't competitive enough.

Are you in particular worried that said bankers may join your firm?

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Well thats marked Brian Lenihan card. No million pound consultancy job when he leaves office. Didn't any body tell him if you look after the banks when you are in office the banks will look after you when you leave office? Silly man.

For what it's worth, Lenihan has cancer.

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Are you in particular worried that said bankers may join your firm?

Not my firm, just come to the UK.

I mean our bankers are a set of thieving ***** but would we want them replaced by those even more blatant thieving ***** in Ireland?

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  • 311 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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