Wednesday, August 24, 2011

Zombie bank throws money around like confetti

RBS pay £2,000 per day for temp staff

RBS shouldn't even exist,yet they throw money around as if it didn't care...well guess what it doesn't care...if you bail people who are rubbish out,then they just do the same thing all over again...no-one prosecuted..no-one banned...bonuses still paid...why do we put up with it?

Posted by taffee @ 12:53 PM (1786 views)
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12 thoughts on “Zombie bank throws money around like confetti

  • It’s exactly the same in Lloyds

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  • Common enough story. Big company (or big government department) fires lots of staff in an attempt to appear frugal and cost-cutting. A few weeks later they realise they fired too many, so they have to hire more expensive short-term staff to cover the gap. In the case of a government department, contract workers come out of a different budget and aren’t classed as employees. The department gets to look good in their official report (“Look! Our headcount is down and we’re just as productive!”), while the small print shows a rapid increase in the “other expenditure” column.

    As RBS is effectively now a government department, I’m hardly surprised that this has happened.

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  • Where is the “elsewhere” to which these contract staffers would migrate if they weren’t paid enough? Europe’s banks are too weak to withstand the current debt crisis and all banks are finding it more difficult to obtain funding from the money, repo and commercial paper markets.

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  • Nurses save lives everyday and get paid a pittance.
    Teachers educate our future generations and struggle to make ends meet.
    Gimps who write software for a bank which is so shite it had to be bailed out get 2 grand a day.
    And when people start rioting they need a commitee to try to figure out why…

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  • mark wadsworth says:

    “Gimps who write software for a bank which is so shite it had to be bailed out get 2 grand a day.”

    It’s worse than that. The actual people get paid £200 a day or something, and the consultancy which employes them slaps a 900% profit margin on top.

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  • Silent Witness says:

    wrong wrong wrong wrong and wrong again. It’s posts like this that finally make me realise that you lot do not know what your talking about.

    Drewster, the people on these big amounts have been here for years.

    Very few people have the IT and Business knowledge to handle integrating 50,000 positions from a whole dutch business (ABN) to a PLc business) I know, cos I have seen many clowns in these areas.

    Timmy, these people are not writing trading softwhere or algo’s, . people who make those decisions get far more than 2k a dayk a year……

    Mark, your wrong, these amounts are before the agency cut….

    So there you go, ur all assume as usual, that you know it all about banks.

    Oh……and these people all work in equity dervis….I don’t recall us losing money……

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  • What MW says. Consultancy firms like PwC pay their staff maybe £50k but then rent them out to clients at £900/day (equivalent to £200,000 minus a bit for Employers’ NI and VAT). Some of the balance goes to cover quiet days, training, winning new business, HR, accounts, other overheads, etc. (but not expenses; those are charged to the client on top of the £900/day). Clearly there’s still a hefty profit margin – and most of that goes to the shareholders or partners.

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  • MW, Drewster, often, yes, but this story is about an email from someone at Hays who will be on maybe a 10% margin if they’re lucky. So 1800 goes to the contractor’s Ltd Company which then pays dividends to the temp avoiding NI etc.

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  • …and the PWC employee spends most of the time trying to generate more work for PWC.

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  • mark wadsworth says:

    TT, all I’m saying is what I have observed in real life, the little guys with their one-man limited companies don’t usually get away with invoicing £1,800 a day, no sirree, and employment agencies like Hays or Reed or whoever have a five or ten per cent margin, fair enough, that isn’t too bothersome. It’s certain large consultancies, many of whom have former government ministers on their board of directors who are invoicing the £2,000 a day. That said, i suppose we can wait until the spreadsheet pops up on Wiki leaks or something and that will settle the matter.

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  • Rbs_contractor says:

    Hi All
    I’m one of those contractors within RBS’s investment bank. I can tell you that if you’re on a quarter of that £2000 you’re doing just fine. It’s either the likes of PWC pimping out actuaries or perhaps some hot-shot trader who’s been brought in as a stop-gap.
    p.s. as a regular reader here, thanks for the flow of news items. I too am looking forward to the day when interest rates reset to normal levels, along with asset (and house!) prices.

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  • I know someone who’s been a contractor to RBS for nearly two years at £1200 a day. One-person band. She can probably retire after this job. RBS has also reportedly been paying guaranteed bonuses on a wide scale to lure staff to its investment bank. All this from a bank that lost £1.1 bn in 2010 while paying out £1 bn in bonuses to staff. You couldn’t make it all up.

    http://www.guardian.co.uk/business/2011/feb/24/rbs-bankers-bonuses-despite-loss

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