Scunnered Posted January 10, 2011 Report Share Posted January 10, 2011 From the Telegraph: Big bonuses to stay if banks boost lending High street banks would pledge to increase lending to small businesses and home owners by more than £200 billion under the terms of a secret deal that would pave the way for them to pay out billions of pounds worth of bonuses. The banks are locked in negotiations with the Treasury over an agreement that would see them boost lending in return for tacit government approval for their bonus plans. First-time buyers would be offered more attractive mortgage deals without having to put down a large deposit. In return, the Government would not seek to block or attack bonuses provided the banks demonstrated their commitment to helping businesses and wider society. [continues...] Life just gets better and better. Quote Link to post Share on other sites
the_duke_of_hazzard Posted January 10, 2011 Report Share Posted January 10, 2011 Isn't that exactly what caused the crisis in the first place!? Quote Link to post Share on other sites
Confounded Posted January 10, 2011 Report Share Posted January 10, 2011 From the Telegraph: Big bonuses to stay if banks boost lending Life just gets better and better. You really could not make this stuff up. Quote Link to post Share on other sites
Tonkers Posted January 10, 2011 Report Share Posted January 10, 2011 (edited) Well yes, the more loans, the bigger the bonuses! Is the treasury agreeing to pick up the tab, once again? Edited January 10, 2011 by Tonkers Quote Link to post Share on other sites
MrFlibble Posted January 10, 2011 Report Share Posted January 10, 2011 The game of 'double or quits' continues. The bankers must be pissing themselves laughing at how they are have completely turned the government into their bitch. Quote Link to post Share on other sites
frenchy Posted January 10, 2011 Report Share Posted January 10, 2011 This isn't necessarily bad news for HPC. There is lending and lending, if the banks boost lending but at sensible valuations then it isn't a problem, even with 90% LTV. For HPC to happen there needs to be volume, it is only when houses start selling again, albeit at lower prices, than indexes will start to remotely makes sense and the LR database will start growing with examples of cheap houses further down that street where you want to buy that house that has a ridiculous asking price. Quote Link to post Share on other sites
guitarman001 Posted January 10, 2011 Report Share Posted January 10, 2011 Isn't that exactly what caused the crisis in the first place!? It's absolutely sickening Quote Link to post Share on other sites
@contradevian Posted January 10, 2011 Report Share Posted January 10, 2011 I'm sure its contained, but I'm starting to dislike this government more and more. Quote Link to post Share on other sites
Bloo Loo Posted January 10, 2011 Report Share Posted January 10, 2011 we need a glass Steigel act for the UK. What has High Street lending to do with stockmarket gambling. Oh, and I hear they want all things done and dusted by the time the March Silver Contracts are due...there may be no cash left to even paythe bonuses if that lot blow. Quote Link to post Share on other sites
we the sheeple Posted January 10, 2011 Report Share Posted January 10, 2011 Total farce "New Lending" includes increasing loan facilities, rather that loan facilities actually taken up. So, banks just do the rounds of their clients who don't borrow money, and sign them up for bigger overdrafts. Bonuses sorted. Quote Link to post Share on other sites
the flying pig Posted January 10, 2011 Report Share Posted January 10, 2011 Quote Link to post Share on other sites
The Spaniard Posted January 10, 2011 Report Share Posted January 10, 2011 HMG: Please, please Mr Banker, the economy needs more of your magic, debt-based money lent to it. Otherwise there won't be enough to service the debts already owed to you. Mr Banker: OK, but you must stand aside and let me take my usual big cut. If you don't agree I'll squeeze and squeeze and squeeze until you scream! And I can. HMG: Of course, we know our place. We only queried your bonus culture in order to get elected. (with apologies to Richmal Crompton) Quote Link to post Share on other sites
Oliver Sutton Posted January 10, 2011 Report Share Posted January 10, 2011 I'm sure its contained, but I'm starting to dislike this government more and more. The acid test for me was how they treated the bankers. Sort of knew they wouldn't be too harsh on their old school mates in the city. Quote Link to post Share on other sites
Pole Posted January 10, 2011 Report Share Posted January 10, 2011 HMG: Please, please Mr Banker, the economy needs more of your magic, debt-based money lent to it. Otherwise there won't be enough to service the debts already owed to you. Mr Banker: OK, but you must stand aside and let me take my usual big cut. If you don't agree I'll squeeze and squeeze and squeeze until you scream! And I can. HMG: Of course, we know our place. We only queried your bonus culture in order to get elected. +1 spot on. Every recent government has always been serving big banks first, and then global corporations, and then their inner circle pals, and then at the end of the queue there are the UK people. Quote Link to post Share on other sites
@contradevian Posted January 10, 2011 Report Share Posted January 10, 2011 The acid test for me was how they treated the bankers. Sort of knew they wouldn't be too harsh on their old school mates in the city. Its a farce anyway, as I believe that net lending is falling as personal and corporate repay their loans. So makes you wonder if the banks need so much support. Also the bonuses are not earned by lending, but by the various City scams, such as share front running, pumping stock and commodity markets, selling dodgy securities, selling British firms out to foreigners, mismanaging pensions, and so on! Quote Link to post Share on other sites
Bloo Loo Posted January 10, 2011 Report Share Posted January 10, 2011 Its a farce anyway, as I believe that net lending is falling as personal and corporate repay their loans. So makes you wonder if the banks need so much support. Also the bonuses are not earned by lending, but by the various City scams, such as share front running, pumping stock and commodity markets, selling dodgy securities, selling British firms out to foreigners, mismanaging pensions, and so on! you forget, without new loans the bankers cant repay their old ones....if a bank doesnt lend, it has no income stream. We have way too many banks if you ask me. Quote Link to post Share on other sites
Tiger Woods? Posted January 10, 2011 Report Share Posted January 10, 2011 I just can't bear to read this stuff anymore. It makes me feel impotent rage. Quote Link to post Share on other sites
General Melchett Posted January 10, 2011 Report Share Posted January 10, 2011 I just can't bear to read this stuff anymore. It makes me feel impotent rage. Quite. And we have no democratic options to vent our rage. Quote Link to post Share on other sites
Democorruptcy Posted January 10, 2011 Report Share Posted January 10, 2011 (edited) Also the bonuses are not earned by lending, but by the various City scams, such as share front running, pumping stock and commodity markets, selling dodgy securities, selling British firms out to foreigners, mismanaging pensions, and so on! The banks undoubtedly make money from city scams etc but they must also make profits and so bonuses from lending to fuel HPI. Per £100k bought for and sold per £150k gives a £50k i.e. 50% "Profit". Buying per £240k means a £90k gap to fund from the £150k. Because of HPI the £240k also costs 50% more i.e. it would have been just £160k Without HPI the gap would be just £60k (£160k - £100k) Therefore there is no 50% "profit", it's just 50% (£90k not £60k) more debt to service. More debt to service equals more mortgage interest for banks, multiply that by millions of mortgages and it's a bank bonus earner. Edited January 10, 2011 by Redhat Sly Quote Link to post Share on other sites
red11 Posted January 10, 2011 Report Share Posted January 10, 2011 Amazing news. The government continues to do nothing about bank bonuses, despite the taxpayer actually owning most of the bank. You really couldn't make this stuff up ! Quote Link to post Share on other sites
Tiger Woods? Posted January 10, 2011 Report Share Posted January 10, 2011 "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." Roman Emperor Marcus Aurelius (AD 121-180) "It is no measure of health to be well adjusted to a profoundly sick society." Writer and Philosopher Jiddu Krishnamurti (AD1895 – AD1986) Quote Link to post Share on other sites
libspero Posted January 10, 2011 Report Share Posted January 10, 2011 They simply ought to threaten sacking the entire boards of the government owned banks if they don't toe the line. (well they woud if they wanted to of course) You have to understand the mentality of the P/S. They won't sack 'em because they know at some point they have to sell em. They will be worried that if they sack the senior managers and it all goes to **** they will get the blame. So instead they'll do what they always do.. sit on their hands and follow the path of least resistance. 100% guaranteed . Quote Link to post Share on other sites
R K Posted January 10, 2011 Report Share Posted January 10, 2011 (edited) First-time buyers would be offered more attractive mortgage deals without having to put down a large deposit Told you that one was coming next. Dave and Osborne are so transparent it's ridiculous. http://www.housepricecrash.co.uk/forum/index.php?showtopic=156992 My prediction for 2011:-Schapps will unveil an 'innovative' (he likes that word) mechanism for first time buyers, which the Tories have agreed with the taxpayer funded banksters, involving a short-term subsidy to fund an FTB deposit (and long-term debt instrument, obviously) which the banksters can dress up into some rehashed form of securitisation and sell to the pension funds. Think Thatcher's Right to Buy for council houses but for the private sector. Mark my words (h/t ham) Edited January 10, 2011 by Red Karma Quote Link to post Share on other sites
keeprenting Posted January 10, 2011 Report Share Posted January 10, 2011 From the Telegraph: Big bonuses to stay if banks boost lending Life just gets better and better. Brilliant. Absolutely brilliant. A return to Brown economics. Pump it up with debt, watch the economy boom and let the banksters cream massive bonuses off the top. It worked so well last time, why not give it another go? Quote Link to post Share on other sites
MrPin Posted January 11, 2011 Report Share Posted January 11, 2011 Also the bonuses are not earned by lending, but by the various City scams, such as share front running, pumping stock and commodity markets, selling dodgy securities, selling British firms out to foreigners, mismanaging pensions, and so on! I was wondering about the difference between normal banks, and the "gambling houses" Quote Link to post Share on other sites
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