BANKERS' BONUSES- We can do something!!

Ocellia

Banker’s bonuses. We can influence the outcome!
CHANGE YOUR ACCOUNT TO A MUTUAL BANK.
Banks were once a place where folk stored their money. This money was then used to help businesses grow, and the interest rate paid savers and the bank.
Too naïve? Obviously. It seems that nowadays, Banks are just a larger version of a Betting Office. Bankers spend most of their time buying and selling from each other in a financial version of Musical Chairs, except the music never stops.
Until 2 years ago when somebody noticed that all their betting was built on sand. No one was betting on businesses actual worth, but just on the rise, or even fall, of the share price, or even on the variation in the price of MONEY!!

A story I read recently draws a parallel; an antique dealer bought a Commode for £400. He took it round the corner to a fellow dealer who gave him £500 for it. But later, the seller started thinking he had sold it too cheaply, so bought it back again for £550. Then the second dealer, having the same thought, bought it back again for £600.
Then he sold it to a (REAL!) customer for £700. The original seller came back again “Where’s that commode I sold you?”
“Oh, I sold it”
Why? It was making us so much money” !!

This is just like Bankers trading. Each trade gets a small commission. Backwards and forwards (?) to each other. But there is no value in the sale. And in the end, SOMEONE must pay.
Us?
The huge bonuses are paid to the most daring Bettor in this “Market”, making ever-weirder risks happen
It seems that the Chancellor can’t -or won’t - put a stop to this stupidity (he’ll be told that ‘everyone else is the same, world-wide’ etc. no doubt.)
So the whirligig will whirl ever on?

But perhaps WE as a group can stop it?
Individually we can’t. But if we all start to take our business out of Banks that are paying these huge ‘bonuses’ and TELL them why we’re moving?

Some Banks, like the Co-op, are Mutuals, so any profit comes back to us, the customers!
Shall we start to use our financial clout to change things? It seems the Government can’t.
We can!

Chris in Bristol

Lokolo

I'm happy with HSBC to be honest.

jambosans

I would love to join the Co-Op, if they only extended their branch network in Scotland from one.

Paul_Herring

CHANGE YOUR ACCOUNT TO A MUTUAL BANK

Why? Nationwide is acting just like a bank these days; dire savings interest rates, expensive mortgage rates (when compared to savings rates,) dire customer service...

I expect the Co-op to be no different.

withnell

When the co-op / Nationwide pay decent rates I'll happily move - any other mutuals offering current accounts with a good rate?

Inactive

withnell wrote: »

When the co-op / Nationwide pay decent rates I'll happily move - any other mutuals offering current accounts with a good rate?

Nationwide do pay " decent rates " to their Directors.:D

Sadly not their customers any more.

Sceptic001

Paul_Herring wrote: »

Why? Nationwide is acting just like a bank these days; dire savings interest rates, expensive mortgage rates (when compared to savings rates,) dire customer service...

Indeed, and according to page 49 of its annual report it paid £6.5 million in salaries and bonuses to its seven executive directors.

EDIT: Ha, Inactive beat me to it!!!

97trophy

To the OP, I bet you have a Che Guevara. t-shirt or poster?

onlypaddy

I think the OP is a Co-op director. Sounds nothing but an advert to me.....thought that was banned on this forum?

TEDDYRUKSPIN

Mutuals? Own by members. Why o why? Most of the so called members nearly closed down and were taking over by other mutuals.

So why would an individual risk putting money in these?

opinions4u

Ocellia wrote: »

Banker’s bonuses. We can influence the outcome!
CHANGE YOUR ACCOUNT TO A MUTUAL BANK.

Why? Do mutuals not pay their directors large salaries and bonuses?

In fact, if you measured Chief Executive pay for 2007 per £ profit made, I'd hazard a guess that the top 50 payers would be mutual building societies.

Banks were once a place where folk stored their money. This money was then used to help businesses grow, and the interest rate paid savers and the bank.

Some still are.

A story I read recently draws a parallel; an antique dealer bought a Commode for £400. He took it round the corner to a fellow dealer who gave him £500 for it. But later, the seller started thinking he had sold it too cheaply, so bought it back again for £550. Then the second dealer, having the same thought, bought it back again for £600.
Then he sold it to a (REAL!) customer for £700. The original seller came back again “Where’s that commode I sold you?”
“Oh, I sold it”
Why? It was making us so much money” !!

Well they've made £300 profit between them haven't they?

The huge bonuses are paid to the most daring Bettor in this “Market”, making ever-weirder risks happen

As stated previously, the biggest benefit packages per £ profit made in 2007 clearly went to the chief executives of mutuals.

But perhaps WE as a group can stop it?
Individually we can’t. But if we all start to take our business out of Banks that are paying these huge ‘bonuses’ and TELL them why we’re moving?

Show me a bank or building society where they don't pay their head honcho and I'll consider it.

Some Banks, like the Co-op, are Mutuals, so any profit comes back to us, the customers!

How? Show me the value of that dividend and compare it to the naff savings rates they pay. Prove to me it's financially beneficial to me. It isn't. So I'm not moving to Co-op.