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Andy D

Barclays Bonuses Are Three Times The Amount Paid In Dividends

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Barclays staff bonuses are three times the amount it pays to shareholders in dividends...

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8324166/Barclays-facing-investor-backlash-over-bonuses.html

I pay about £180 per month in council tax. That's £1800 a year, as it's paid in 10 installments. In return for that I do get some services.

Barclays have made profits this year equivalent to £1000 from every British citizen - I get nothing for that, although somewhere along the line in the food chain from poor to rich, I've contributed to those obscene profits.

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Wow, a hedge fund is usually 2 and 20, 2% base charge, and 20% of any profits goes to the managers.

Barclays, has a 75% charge on profits for investors. And those investors have to stump up more cash when it all goes wrong.

What we really need here is a change to the voting system, so that only individuals who are the actual beneficial shareholders can vote on the shares. The insiders steal most of the votes by proxy. Those shares you have in a unit trust, or are bought as capital by insurance companies, or are managed by Goldman Sachs for you pension fund, the votes are stolen and cast so that insiders at banks can pillage your money. This power to pillage would be removed if institutions could no longer vote on these shares.

The law needs to be changed on shareholder voting.

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A heist paid for, in part, by lower dividends and lower savings rates.

The perfect robbery and no charges to be filed.

Contrary to the reports in the press it looks as if ex Lehmans traders have made a reverse takeover of barclays and all its account holders and shareholders.

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It appears to be worse than the headline.

I am seeing a total dividend payout of £531 million.

Bonuses at Barcap are around £2.6 billion according to the Beeb.

They also state that base salaries have been raised as well.

Why bother holding shares in this criminal enterprise?

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Dave Osborne and Boris says we must get behind our banksters and move on.

100% Windfall tax.

Let them transfer their liabilities to the Swiss or German mug taxpayer if they like.

Dead simple. Unless of course Dave, Osborne and Boris work for them, not us. Which is it lads?

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Disgusting. No call for it. They should be re-building their balance sheets, writing off debts and paying money to shareholders (pension funds).

What other industry pays such a huge proportion of its profits to its hired hands? Communism at work I suppose. :D

These 'profits' that the banks claim to making is nothing apart from cooking the books with their accountant friends - for example lowering writedowns on bad debt. So what happens when more people default on unsecured loans and the housing market continues to grind lower? They'll be back for another bail out but these thieving banksters won't be paying back their bonuses. In any civilised country messrs Diamond, Goodwin, Hornby et al would be swinging from lamposts not swigging Cristal :angry:

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Which makes the whole concept of 'PLC' share ownership a pointless exercise. Why bother owning bits of companies when they are run for the exclusive benefit of the CEO and execs? This must be all about retaining 'Talent' in the UK.

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I pay about £180 per month in council tax. That's £1800 a year, as it's paid in 10 installments. In return for that I do get some services.

Barclays have made profits this year equivalent to £1000 from every British citizen - I get nothing for that, although somewhere along the line in the food chain from poor to rich, I've contributed to those obscene profits.

The whole of the world contributed to that profit. Not just a few million in the UK

tim

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Guest sillybear2

The real bankers, the shareholders (us in many cases), are getting completely f***d by managers and the top tier of workers in these institutions. The whole set up has been captured by the employees, including the board of directors for allowing it. Scargill would be proud of such fleecing of the capital holders, but it's a shame they don't quite ascribe to his redistributionist principles, heh.

If a company produces a surplus it can either be 1. retained to cushion against future shocks. 2. distributed to equity holders in the form of a dividend or buy back. 3. Taxed or leived by the government or 4. Looted by the employees (senior management and traders in this case). So box number 4 Noel!

Yet the government and BoE still spray free money at them, completely amazing. At the same time a young woman picks up a box of discarded potato waffles and finds herself arrested and charged with theft.

What a strange country we live in.

Edited by sillybear2

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Disgusting. No call for it. They should be re-building their balance sheets, writing off debts and paying money to shareholders (pension funds).

What other industry pays such a huge proportion of its profits to its hired hands? Communism at work I suppose. :D

They are re-building their balance sheet - article states pre-tax profit (i.e. after salary/bonus) forecast at 5.8bn v dividend of 570m, which equates to several billion of retained profit. Returns to shareholders are not just in the form of dividends but also in retained profit / increased share price. Some companies never pay a dividend but people still invest in them.

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Guest sillybear2

I pay about £180 per month in council tax. That's £1800 a year, as it's paid in 10 installments. In return for that I do get some services.

Barclays have made profits this year equivalent to £1000 from every British citizen - I get nothing for that, although somewhere along the line in the food chain from poor to rich, I've contributed to those obscene profits.

Look at the Debt Clock :-

"Every household will pay £1,881 this year, just to cover the interest"

So your council tax has simply been used to pay your share of the interest payment on the national credit card, it hasn't cleared any of the (ever increasing) principle of course, just the interest, so it can't even be compared to a minimum payment. Debt is paper fictions created by the FRB system yet the interest burden is real money out of your pocket, clever huh? Especially when the government takes on debt on your behalf.

I wonder what BARC and its employees will do with the bounty, lend it to the government? See what I'm getting at here.

Disgusting. No call for it. They should be re-building their balance sheets, writing off debts and paying money to shareholders (pension funds).

What other industry pays such a huge proportion of its profits to its hired hands? Communism at work I suppose. :D

The truth is these aren't even real profits, if they had to mark-to-market they'd be crushing losses, but helpfully the authorities have suspended the rules so they can keep their fictitious valuations.

It's really nice when the government does everything possible to ensure you don't fail huh?

Let them transfer their liabilities to the Swiss or German mug taxpayer if they like.

The Swiss government isn't stupid (that must be nice), if these banks washed up at Lake Geneva they'd force them to hold twice the capital required by Basel III.

Edited by sillybear2

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They are re-building their balance sheet - article states pre-tax profit (i.e. after salary/bonus) forecast at 5.8bn v dividend of 570m, which equates to several billion of retained profit. Returns to shareholders are not just in the form of dividends but also in retained profit / increased share price. Some companies never pay a dividend but people still invest in them.

They would rebuild it more if they did not pay obscene bonuses!

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Guest sillybear2

How much of these "profits" have been gouged by the fake market created between the central banks and the bond traders during their QE operations?

BoE: "Would you like lots of free money at bank rate (0.5%) so you can buy long dated gilts yielding 4.5% and sit on the spread?"

Mr Bankster: "Yes please! I get to keep the difference!"

Governement: "Would you lend to some real companies please Mr Bankster man with all our money, pretty please?"

Mr Bankster: "Err... no, I'd rather just continue my risk free arbitrage and cook the books with all the crappy loans I made in the past"

BoE: "Shall I bend over some more, or would you like this arrangement to end?"

Mr Bankster: "NO! Your free money is vital to my role in a dynamic free wheeling risk taking capitalist system".

Government: "Listen up folks! Mr Bankster is vital to our continued prosperity so please don't be nasty to him, especially if you think you've seen him rob you blind at bonus time. He is generating so much wealth for everybody by borrowing from one arm of the government and lending to the other. Besides, he gave me the remains of a half eaten doughnut earlier to share out, he's really upset that I nabbed this, yummy".

Mr Bankster: "That's right, and if they complain about this set up then they're all just jealous, or anti-capitalist communist types that believe in getting lots of free things from the government and giving nothing in return. The opposite of I"

Government: "Mr Bankster has offered me a nice job when I get kicked out. This is a good settlement".

Edited by sillybear2

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OMG. The bankers have created a socialist workers' cooperative. The surplus value is being paid to the provider of the labour not the owner of the capital. WTF?

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Guest sillybear2

OMG. The bankers have created a socialist workers' cooperative. The surplus value is being paid to the provider of the labour not the owner of the capital. WTF?

Clever ain't it? They've progressed beyond capitalism, but sadly at the expense of everyone else. Marx would be kind of proud.

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OMG. The bankers have created a socialist workers' cooperative. The surplus value is being paid to the provider of the labour not the owner of the capital. WTF?

A weird echo of the over mighty unions that caused such chaos in the past. Will Dave Cameron now be our Thatcher and call out the Cavalry to smash the might of this new breed of overweeing socialism?

Not a f*cking chance :D

Socialism for the rich is exactly what Dave and Co were purchased to provide.

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Clever ain't it? They've progressed beyond capitalism, but sadly at the expense of everyone else. Marx would be kind of proud.

I expect even Marx expected the worker to do something slightly useful occasionally.

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Guest sillybear2

I expect even Marx expected the worker to do something slightly useful occasionally.

Yeah, he wasn't too keen on rent seeking either.

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BoE: "Would you like lots of free money at bank rate (0.5%) so you can buy long dated gilts yielding 4.5% and sit on the spread?"

Mr Bankster: "Yes please! I get to keep the difference!"

Governement: "Would you lend to some real companies please Mr Bankster man with all our money, pretty please?"

Mr Bankster: "Err... no, I'd rather just continue my risk free arbitrage and cook the books with all the crappy loans I made in the past"

BoE: "Shall I bend over some more, or would you like this arrangement to end?"

Mr Bankster: "NO! Your free money is vital to my role in a dynamic free wheeling risk taking capitalist system".

Government: "Listen up folks! Mr Bankster is vital to our continued prosperity so please don't be nasty to him, especially if you think you've seen him rob you blind at bonus time. He is generating so much wealth for everybody by borrowing from one arm of the government and lending to the other. Besides, he gave me the remains of a half eaten doughnut earlier to share out, he's really upset that I nabbed this, yummy".

Mr Bankster: "That's right, and if they complain about this set up then they're all just jealous, or anti-capitalist communist types that believe in getting lots of free things from the government and giving nothing in return. The opposite of I"

Government: "Mr Bankster has offered me a nice job when I get kicked out. This is a good settlement".

Great post. Too bad the average member of the public will never grasp just how badly they are being shafted.

Democracy only works when you have an educated, intelligent, motivated electorate. Just about the opposite of what the UK has.

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They are re-building their balance sheet - article states pre-tax profit (i.e. after salary/bonus) forecast at 5.8bn v dividend of 570m, which equates to several billion of retained profit. Returns to shareholders are not just in the form of dividends but also in retained profit / increased share price. Some companies never pay a dividend but people still invest in them.

Except companies that dont pay dividends are either growth companies which invest the money to fund expansion or kept as retained equity. This increases the overall value of the company thus increasing the share price.

But in the case Barclays it isnt using this diverted money to build equity, its using it to fill the blackhole made by making payments to its investment bank workers, out of what should rightly have been monies kept as risk equity (If they had correctly managed risk no bonuses would have been paid out whatsoever in the 2000's and it would have been kept to hedge against the vastly increased risk). Thus we have transfer of value from shareholders to investment bankers. Even worse its still continuing because instead of asking the IB workers to make income sacrifices to fill the hole, its coming completely at the expense of shareholders. In essence shareholders are paying to keep investment bankers in lives of luxury.

So the question to ask is in what other business is it common practice for shareholders to lose wealth to fund the lifestyles of its workers??

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An excerpt from a recent email I got from Moneyweek

As my colleague James Ferguson recently pointed out, the big four UK banks (HSBC, RBS, Barclays and Lloyds) reported pre-tax and pre-impairment profits of £374bn between January 2003 and June 2010. Over the same period, their loan loss provisions have added up to £172.5bn. So on the face of it, the banks appear to have made a profit of £200bn in that time.

The trouble, says James, is that that’s almost exactly the same amount that the Bank of England has made available to banks under its funding subsidies. So in fact, the big four UK banks have not made a profit in almost eight years – despite paying out almost £75bn in bonuses.

If the banks precipitate another crisis in the the medium term my guess is that there would be large scale civil unrest, both here and in the US.

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  • 312 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% +
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      • Even
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      • up 5%



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