MARTIN, HOLD THE CEOs TO ACCOUNT

libragully

Martin, we need you to start another groundswell of activity to correct the wrong doings of the past month just as they are doing in the US right now.

To many of those who read this wonderful site, recent events over the past month have lead to very uncertain times financially, with many of us 'losing our hat', despite doing nothing wrong.

Many of us did not over extend borrowings, in fact we saved like our parents and grandparents. Whether it be in deposit accounts or shares, we did the right thing by saving for our retirements.

Personally, having seen my pension of banks stocks absolutely ruined by the activity of the past month, I find myself somewhat dazed, even though I have done nothing wrong.

If things were as bad as they now say, why did no self respecting bank CEO declare the position. Instead they continued to claim their inflated bonuses, stock options, pensions and parachute payments. Totally dispicable!!

In the US, those who continued to fiddle while Rome burned, are now being pursued by class actions in the courts.

With the thousands who find themselves in the same position, we need to organise ourselves and hold these mongriels to account.

What about Martin, fancy another bank campaign?

dunstonh

Personally, having seen my pension of banks stocks absolutely ruined by the activity of the past month, I find myself somewhat dazed, even though I have done nothing wrong.

How have you seen your pension ruined? The stockmarket has gone down less than it did during the last major decline 6-8 years ago. Events like this hit investments on average once every 7 years. So, what did you do in the last one at the start of the millenium when it dropped more?

What about the contributions you are making to the pension now which are buying units 40% cheaper than just over a year ago? For long term investment contracts, events like these can prove to be highly beneficial. Its only in the short term it can be an issue.

Perhaps you should have invested better and not put all your money into bank shares. That is hardly quality investing and you were taking a bit of a high risk punt.

If things were as bad as they now say, why did no self respecting bank CEO declare the position. Instead they continued to claim their inflated bonuses, stock options, pensions and parachute payments. Totally dispicable!!

Where is your evidence that bank directors have taken large bonuses since this came to a head?

In the US, those who continued to fiddle while Rome burned, are now being pursued by class actions in the courts.

In America you get taken to court any everything and anything. Doesnt mean they will succeed as there is little evidence of wrong doing.

I suggest you try and return to reality and understand that whilst things are not good now, this was always going to happen and it will happen again. The reasons or catalyst will be different each time. The degree it will impact will be different but its just same old boom/bust.

Trollfever

Nationalised lender Northern Rock has said it will not take legal action for negligence against the executives in charge of the bank before its collapse.
Management said a review by lawyers and accountants into the management led by chief executive Adam Applegarth found "insufficient grounds" to proceed. The probe concluded the firm's auditors should also avoid any action

http://news.bbc.co.uk/2/hi/business/7669061.stm

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libragully

Dear dunstonh,

Thankyou for your sensitive comments. I was under the impression that this site was to help the little guy, not look after the interests of highly paid, and clearly incapable executives!

Whilst not wishing to enter into a tit for tat, your views are typical of an IFA, of whom I have known many over my years in high street banking.

If you guys have all the answers, where were you a month ago warning us of the impending perils to come? Exactly.

The point I was making that as somebody who has been with an employer until retirement, whether the industry be railways, mining or insurance, you accumulate a large quantity of stock via profit sharing and the like. In my case with a high street bank, that stock 'on paper' is devalued, whilst 'investments' in other so-called blue chip banks have literally disappeared under the govts blanket.

Just coming back to your informed position, do you think it was sensible of AIG staff to go on an all expenses paid junket to a spa resort, a week after an $85billion bail out and a week before a further $35 billion bailout. These guys are taking the mickey and you know it.

As an insider you know what goes on within the financial industry just as I do. At least be honest about it, rather than giving a misleading impression to others who are not so well informed of the ways of the city.

opinions4u

There is an irony that a previously sound and profitable way of trading (wholesale money markets funding lending) has tripped up so many.

While not suggesting they should all get big bounses for the assumption that this would work forever, they are a tad unfortunate in how it all went tits up.

Shame the small shareholder has suffered so much (he said after buying in to HBOS at 550p!).

dunstonh

Thankyou for your sensitive comments. I was under the impression that this site was to help the little guy, not look after the interests of highly paid, and clearly incapable executives!

That isnt the intention of this site at all. Its about getting best value for money.

Whilst not wishing to enter into a tit for tat, your views are typical of an IFA, of whom I have known many over my years in high street banking.

Until recently (And only then a minority), IFAs havent worked for banks. No doubt you are mixing IFAs up with tied agents.

If you guys have all the answers, where were you a month ago warning us of the impending perils to come? Exactly.

I dont think you understand what an IFA is.

The point I was making that as somebody who has been with an employer until retirement, whether the industry be railways, mining or insurance, you accumulate a large quantity of stock via profit sharing and the like. In my case with a high street bank, that stock 'on paper' is devalued, whilst 'investments' in other so-called blue chip banks have literally disappeared under the govts blanket.

You point is no different to any other share holder in a business. If you own shares you are taking a risk. If you are top heavy in just one share you are taking a very big risk.

Why should bank staff with share options be treated differently to those shareholders in say Marconi or Polly Peck? Its not the first time a large company has seen shareholders lose money. It wont be the last.

Just coming back to your informed position, do you think it was sensible of AIG staff to go on an all expenses paid junket to a spa resort, a week after an $85billion bail out and a week before a further $35 billion bailout. These guys are taking the mickey and you know it.

Booked and paid for long before there were problems. Certainly common sense would have suggested they handled it better. However, the media did not correctly report on it.

It was not for the CEOs. If was for a subsidiary company for independent life insurance agents, not for AIG employees. These agents were top business producers for the company, and of the more than 100 attendees, only 10 were employees of the AIG subsidiary who were there to represent their company. No AIG executives from headquarters attended.

Those attendees has earned the right to be there. Its quite probable that had the event been cancelled, there would have been legal action as it was something those sales people were getting as part of their remuneration. To not do it would potentially be more damaging than to do it. If those top sales people stopped using AIG, then the lost revenue could have been damaging.

As an insider you know what goes on within the financial industry just as I do. At least be honest about it, rather than giving a misleading impression to others who are not so well informed of the ways of the city.

There are plenty of things that go on but this is hardly the website for it.

odowdchr

libragully wrote: »

As an insider you know what goes on within the financial industry just as I do. At least be honest about it, rather than giving a misleading impression to others who are not so well informed of the ways of the city.

So why not start your own campaign?
I can't see anywhere that your post helps with "savings or investing"..so would it not be better to start a discussion in "moneysavers arms"?

libragully

Opinions4u, thank you for your post.

The problem really is not so much the wholesale money market, this is just the 'final straw'.

The real problem we now find out is the way the chaps in striped shirts reconstructed lending as we have known it for decades. As a previous bank employee of many years, i thought I knew all there was to know about banking, but the way these chaps have operated borders on an Enron situation.

I am an informed man, but I still have no idea what a CMO is?

that to me says it all.

SouthCoast

but I still have no idea what a CMO is?

Nor did the Fat Cats who are running the Banks.

Babu

Martin, we need you to start another groundswell of activity to correct the wrong doings of the past month just as they are doing in the US right now.

Oh for God's sake, what could Martin possibly achieve! He is just a journalist who has made a living out of highlighting value for money news. All the information that this site publishes is all available if you search for it.

Whether people choose to follow the recommendations given by Martin and others is up to the individual.

Sapphire

Babu wrote: »

Oh for God's sake, what could Martin possibly achieve! He is just a journalist who has made a living out of highlighting value for money news. All the information that this site publishes is all available if you search for it.

Whether people choose to follow the recommendations given by Martin and others is up to the individual.

You are being somewhat unfair to the OP – and to Martin.

Martin is not 'just a journalist': he is influential and has instigated actions such as reclaiming bank charges in the past. He is one of the few people to work for the benefit of 'ordinary' consumers (whatever his motives).

You have also deviated from the subject of the OP's post, which wasn't relevant to this site's information or recommendations.