Posts Tagged ‘bankers’ bonuses’

Angry with RBS? Take a look at the Spanish bank bonuses that British customers are helping fund

06/02/2012, 07:00:49 AM

by David Mathieson

Poor Stephen Hester.  Poor ex-Sir Fred.  Not of course in financial terms, but perhaps unfortunate to find themselves the individual objects of public indignation while others escape without the slightest scrutiny.

Chukka Umunna made the points again eloquently on the Today programme last week: there would be no RBS to pay Hester or Goodwin anything had we, the tax payers, not come to the rescue of the stricken bank and saved it from complete collapse in 2008.

When millions of public sector workers are having their wages, salaries and in some case jobs cut, the payment of bonuses at RBS – always discretionary and never contractual – should not even be on the table.

But does the story stop there?  Hardly.

RBS is different only in that it is more than 80% owned by the state. For all the other retail banks, the bonuses being paid are funded from the charges paid by millions of ordinary account holders.


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AJ and VOC: what Bob Diamond doesn’t understand about bankers’ bonuses

13/01/2011, 12:00:20 PM

by Richard Horton

Barclays boss Bob Diamond talked at length about “pay for performance” during his stint in front of the treasury select committee on Tuesday. And perform he did. Yesterday’s papers inevitably focused on his handling of questions on the twin topics of bonuses for investment bankers and lending to retail customers. And while there was good copy to be had in his assertion that no minister has yet looked him straight in the eye and asked Barclays to restrain bonuses, the real story was sat next to him in the form of Antony Jenkins, chief executive of global retail banking.

AJ – as he is known by his friends and colleagues at Barclays – is in charge of the banking that you and I do on the high street or on the internet. However, his boss comes from an investment banking background, what committee chair, Andrew Tyrie, called “casino banking”. Diamond didn’t like the use of that term and made his feelings known to the committee. In fact, Diamond was so strident in his responses to the committee’s questions that AJ could barely get a word in edgeways. That in itself  speaks volumes about the dynamic between retail and investment banking. AJ was there to fire stats about lending to small businesses and customer satisfaction levels. To provide the necessary statistical liquidity to support his boss, just like retail banking deposits provide monetary liquidity for “casino banking” activities. (more…)

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