The main five British banks will be doling out some jumbo bonuses after Christmas.
What’s changed today is that the Chancellor met the main British banks’ remuneration bosses first thing this morning at the Treasury and the banks said they would abide by the G20 rules which the government intends to bring into law in 2010.
So the bonuses will appear in the bankers’ Christmas stockings – just wait for the truly hideous headlines – but full payment will be deferred for something like three years and only paid across when it’s clear they weren’t short-term evaporating profits.
There are similar moves afoot in the EU and the US. Lord Myners, the City Minister, will next week meet the London bosses of the overseas banks and hope for a similar sign up to the G20 principles.
It all reminds you that the banking world is carrying on paying itself mighty sums at a time when it is propped up by taxpayer money.
The clawbacks may well not happen because City activity in 2008 isn’t the same profile as activity in 2009… and the profits also owe a lot to the fact that the competition’s shrunk.
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[...] the Conservatives some clear choices on economic policy and the banker bonuses. Despite the Chancellor’s impressive deal with Britain’s top five banks, there are senior voices in the government who wanted to go [...]
If only Gordon had had more thinking time and maybe Mandy at his side when the banking crisis blew up. He should have let the banks go bust but protected all the retail depositors money, so the bankers, including Mr Fred the Shred would have had to rely on the PPF for their Pensions like other mortals. 90% of what they were due with a cap of £30,000. If Brown had done that he would have got another term, or if any other politician had suggested it he would have got high approval ratings.
As for the International Banking System who knows but what do you think?
When the annual bonus on my endowment policy is rock bottom, I don’t really see how the Financial Sector can justify paying itself any sort of bonus. The industry is clearly self-serving rather than customer-serving. I really do wish we’d let it fail last year, after the Government had guaranteed our deposits. The industry needs to be re-built from scratch, getting rid of the unhealthy self-serving culture and associated attitudes that are slowly killing the economy.
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