Posts Tagged ‘banks’

Robbery by the Bank


I’m a fairly simple being, and as a result do get myself really riled about some subjects purely because I don’t entirely understand the background elements. This may just be one of those situations, and if it is then I am not alone, but what really heartens me is that there are many others who are equally disbelieving, but also more knowledgeable about the subject than I am.

I am beyond riled, I am incandescent with rage and incredulous that any institution, which is only still in existence due to the taxpayer donating £20 million, is considering any type of bonus scheme for it’s employees. How???? Why????  You see, this is a good example of my naivety. I thought that employees only received a bonus if they performed exceptionally well AND if that contributed to the financial success of their employer. Obviously, working for the NHS, I don’t have any personal experience of a bonus culture however, two of my offspring work for employers who do operate a bonus scheme, neither company is failing but both have recognised a need to tighten belts to help them through the recession so their employees are not receiving a bonus, but do still have jobs.

RBS are quoted as saying that part of the bonus may be in the form of company shares, even that has me questioning the ethics, after all ‘we’ now own a majority shareholding, so how come we aren’t receiving the shares, we are just paying out the money.

There is a really good excuse for this paying out huge sums of money to these fat-cat executives according to Peter Mandelson “you’ve got to recruit the best people and keep the best people in place and motivate them.”  Well, they obviously can’t be that good otherwise the financial institutions wouldn’t be in the state they are in now, so that argument doesn’t hold water. If it did though then that flags up an interesting issue, want good doctors, teachers, nurses, etc. then you have to pay them huge salaries, and since we don’t then the assumption must be that they are not any good.

I have put my cards on the table, admitted that I don’t have a huge understanding of this subject, so I would welcome any explanation of why I should not continue to be outraged by this bonus fiasco. Also, why, when the public purse was opened to the banks, didn’t someone tell the recipients that they shouldn’t even think about bonus’ until they had repayed all the monies?

Read Full Post »