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By (user no longer on site) OP
over a year ago
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has said it made a total loss of £3.6 billion in 2009. Despite this it intends to pay out around £1.3 billion in bonuses!!!!
Is it right that despite the massive injections of public funds these state owned banks can continue to make these huge payouts for their poor performances? |
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By (user no longer on site)
over a year ago
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Well we seem powerless to stop it. Despite supposedly being a Labour government. I think this lot have been operating Ronald Reagan style 'Trickle-Down' economic policies. ie. Let rich & powerful organisations (like banks and utilities and financial services) fleece their customers without proper regulation, and eventually some of the wealth created will trickle down to everyone else (maybe).  |
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By *umpkinMan
over a year ago
near the sounds of the wimborne quarter jack! |
I`m amazed that the if I`m correct in this assumtion that the ones who "lost" these large sums of money are still employed within the bank, let alone being given these large sums of money. When I consider I was possibly going on a disciplinary for getting a tractor stuck in ....... |
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By (user no longer on site)
over a year ago
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Yes from here as well.
None of us may like the way the pay system works in the Banking world but banks are not the only part of the private sector that offers bonuses to it's staff.
If you pay peanuts you get monkeys and if you want the best staff you simply have to pay better than the firm next door or your staff will vote with their feet.
We can all argue till the cows come home about this but if RBS, or any other bank for that matter, is to succeed it has to have the right people in place and that is always going to cost.
Don't forget it wasn't the whole part of the banking sector that got us where we are today. A huge swathe of bank employees produced exactly as required and punishing them for others failings is hardly fair is it.
And for those of us who complain about not getting any bonus for doing well in their current jobs perhaps you should have paid a bit more attention at school  |
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By (user no longer on site)
over a year ago
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"I`m amazed that the if I`m correct in this assumtion that the ones who "lost" these large sums of money are still employed within the bank, let alone being given these large sums of money. When I consider I was possibly going on a disciplinary for getting a tractor stuck in ......."
From what i have read it isnt the ones who made the bad investments who are getting the bonuses. They are saying top end management are not getting a pay out. Find it hard to believe though. |
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By (user no longer on site)
over a year ago
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"Yes from here as well.
None of us may like the way the pay system works in the Banking world but banks are not the only part of the private sector that offers bonuses to it's staff.
If you pay peanuts you get monkeys and if you want the best staff you simply have to pay better than the firm next door or your staff will vote with their feet.
We can all argue till the cows come home about this but if RBS, or any other bank for that matter, is to succeed it has to have the right people in place and that is always going to cost.
Don't forget it wasn't the whole part of the banking sector that got us where we are today. A huge swathe of bank employees produced exactly as required and punishing them for others failings is hardly fair is it.
And for those of us who complain about not getting any bonus for doing well in their current jobs perhaps you should have paid a bit more attention at school "
I couldn't agree more.
The RBS will still be the RBS regardless of whether it has top end banker professionals working for it or new bunch of under-acheivers prepared to work for a reduced earnings package, beacuse that's what we're talking about here; the top earners in RBS will go to more lucrative companies if RBS stops it's bonus payouts and RBS will be forced to employ average bank workers who will not perform as well as the top cats. But the question is: Are you, as a taxpayer, prepared to bail out RBS again when it loses yet more billions because it doesn't have the top guys working for it? |
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By (user no longer on site)
over a year ago
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"in a word yes
wow you agree? if i didn't perform at work i would get a rollicking not a bonus! Z"
Being self employed if i didn't perform i wouldn't get paid never mind get a bonus! lol...bang out of order these banks! |
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By (user no longer on site)
over a year ago
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"in a word yes
wow you agree? if i didn't perform at work i would get a rollicking not a bonus! Z
Being self employed if i didn't perform i wouldn't get paid never mind get a bonus! lol...bang out of order these banks!"
That's the private sector for you. I suggest you get a job in the public sector if you want the perks it offers.  |
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By (user no longer on site)
over a year ago
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great to see where your tax money is goin innit!!
underperform in any other job and your arse is out the door cause there 2.5 million unemployed out there who would sell their granny for a job!
do it in a bank and your above the mere mortals i mean its only money jeezo so what if we on the brink of financial collapse uncle gordon will bail you out!
keep your money in a biscuit tin under the bed it likely safer!!!  xx |
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By (user no longer on site)
over a year ago
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"If the best staff make a £3.6bn loss how good could they be.
No way should they be getting bonuses for failure."
The best staff may have prevented it from being far worse.  |
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Has to be remembered that much of the losses that RBS incured in the first place were as a direct result of the massive global turndown in 2008/2009.
The Real Estate shrinkage in Florida for example cost RBS £950m, there were more foreclosures in Florida in the years 2008 and 2009 than in the previous 20 years in the state.
Should RBS not have lent money to developers and holiday home lease companies in Florida?, banking is all about risk. When RBS lent this money they would have known of the risk involved but it was one of the 'Can't afford not to' situations that banks find themselves in every day.
At the moment RBS are piling loans into the fastest growing economies in the world, India and China....and they are right to do so whatever the risks.
Banks make money through risk... |
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By (user no longer on site)
over a year ago
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Bonus payments are usually set up at the beginning of a contract (annual performance related etc.) As such not to pay bonuses for targets achieved would be like moving the goalposts during the game, and as others have said possibly limiting losses WAS the target they achieved. Also correct is the fact that in an open market the quality staff will be free to move if they feel the goalposts have moved/promises broken etc.
All business is risk/reward related, however in my businesses if I took excessive risks I wouldn't expect anyone to bail me out if things went wrong, just as I wouldn't expect to share my profits if things went well.
The RBS was one of the most profitable companies in the world, not just bank, but any kind of company.
During this period no one complained about the money brought into the UK economy.
Now if we remember the money put into the bank by the government (AKA you and I as the taxpayer ) is not a gift, its a loan, it WILL be required to be repaid, (and is already being partially repaid).
Bonuses are a neccessary evil in the banking world, I don't like them but we all have to live with them.
I for one will try to make the market work for me, the shares in banking worldwide are currently undervalued and the opposite is true, the value of certain commodities ( EG gold) are overvalued because of the global credit crunch investors "bailed out" of banking shares and invested in safe type commodities,as the market re-adjusts the gold type share values will drop back to more normal levels and banks will continue to make profits.
Over a medium to long term I think certain bank shares could be quite sensible to invest in during the recovery period.
All IMHO of course, |
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By *umourCouple
over a year ago
Rushden |
Did they ought to get these bonuses? Yes, it is part of their negotiated pay package and I would like you to think what you would do if your boss said he was cutting YOUR wages!
BUT
Should they get bonuses? Only if the bank has made a suitable profit! Then the total bonus should be paid out to reflect no more that 5% of the total profit for the bank!
The delightful Mrs R (sigh xx) works for a major UK employer and is eligible for a bonus, but only if the company has made over a certain level of profit! How you can pay out a bonus when a loss of 3.6 billion was posted is beyond me!
On the 3.6 billion loss, it was at least way better than last year when it was 24 Billion!! BUT... Still not a performance worthy of a bonus! |
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"in a word yes
wow you agree? if i didn't perform at work i would get a rollicking not a bonus! Z
Being self employed if i didn't perform i wouldn't get paid never mind get a bonus! lol...bang out of order these banks!
That's the private sector for you. I suggest you get a job in the public sector if you want the perks it offers. "
I think that many in the public sector are in for a bit of a shock this year - far too much of our money has been wasted on perks etc - the 'fun house' in leeds is an absolute outrage but i am positive that there are such places tipping our money down the drain all over the country. I wouldn't like to be in the public sector at the moment. Z |
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By (user no longer on site)
over a year ago
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i really got to laugh , i lost my job , due to RBS pulling plug on my company despite woek being on books!!
when i told them this and that i would struggle to pay my bills now inc my loan from them was told sorry not our problem .
they should be no bonuses and if they dont like sack them, they sacked enough of the counter staff!!
GITS!!!!!! |
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