- Bonuses for Bankers
Since this time it’s been revealed that they had a right dog of a year, losing £28bn, the most any company has ever lost,
seriously? and no one thought to check this before writing the cheque? I guess maybe that’s what happpens when you’re spending someone elses money? Come to think of it that’s how the bonuses will be paid isn’t it? With someone elses money….. Ours actually.Posted 9 years agoStonerSubscriber
Something to keep an eye on is “big hole losses”.
Since everyone is expecting the worst news, then there’s no reason not to “dig a big hole and sweep all the crap into it”. All the “losses” mentioned above are actually write downs. That is the difference between the previous book value of the bank’s assets and the current view of the value of those assets. A huge number of these assets have no discernable value. That is not the same as having no value, but putting £0 in the balance sheet is a conservative and pragmatic thing to do. Then, in a few years time when liquidity brings movement to the asset markets again, suddenly these zero value assets are worth something again (nothing like the inflated values previously given, but certainly higher than £0) and woohoo it’#s bonus time again! 🙂Posted 9 years agoSandwichSubscriber
Seems too many people had cake and thought they could eat it. Thing is we all get the indigestion.Posted 9 years ago
The banking sector needs to realise that supply and demand works at all levels, if there is no market value for low end jobs then there is also none at the top. The profitable people can be let go as there will be another along by and by just like buses.
I would suggest that there are no profitable people as the whole house of cards appears to have been build on kiln dried sand. I have a debt someone is paying back so it’s an asset, no it’s a liability and to argue otherwise is arrant nonsense. Basic accounting as taught a long time ago and far less flexible than language when it comes to evolution of the process.brooessMember
My 2 pennorth:
1. The alternative to Capitalism has AFAIK only ever produced human misery on an epic scale, far worse than our current situation. Capitalism isn’t perfect but I do wish people would be a little more grateful for what they have got than complaining about the bit that’s wrong all the time e.g. we don’t get imprisoned or shot for openly disagreeing with the government.
2. You may find that bonuses for some of these individuals were guaranteed and written into their contracts which means the bank has no choice but to pay. In the long term maybe guaranteed bonuses may be scrapped of course but too late to do anything about it now
3. No-one ever held a gun to my head and forced me to spend on my credit card or buy a mortgage. If individuals have debt to an unaffordable level, how can it be some rich guy in the City’s fault and never ever the person who signed the piece of paper applying for it?Posted 9 years agogrizzlygusMember
No-one ever held a gun to my head and forced me to spend on my credit card or buy a mortgage.
So you only ever complain about something if it’s as a result of someone putting a gun to your head ?
You would never complain about the BBC because no one has ever held a gun to your head and forced you to watch it ?
You would never complain about public transport because no one has ever held a gun to your head and forced you to use it ?
You would never complain about other road users because no one has ever held a gun to your head and forced you to use a bicycle ?
We live in a society where our living standards are based on credit. Individuals are actively encouraged to apply for credit, it is the sensible thing to do, so we are told – whether it’s to provide a home for ourselves and our families, or to acquire a means of transport, or pay for a holiday, or buy xmas presents, etc, etc.
It is a system which I believe to be deeply flawed and unacceptable. However, it is the system which is in place at the moment, and until we change it so that people can maintain their living standards and pay for life’s necessities through reasonable wages, there’s not a huge amount that can be done about it.
If individuals have debt to an unaffordable level……
That is not the reason for the “credit crunch” in the UK today. I have heard of no evidence that individuals in the UK defaulting on their debts caused the credit crunch. Indeed it would appear that the most popular solution to the mess which we are in today, is to encourage people to borrow more. Hence the lowest interest rates in history.
I have however heard, that the banks screwed up. And screwed up Big Time.Posted 9 years ago
The topic ‘Bonuses for Bankers’ is closed to new replies.