BANKERS' BONUSES- We can do something!!

halight

The co-op wheel and deal too!

fozzeh

Nice post opinions4u. I'm pretty much going to do the same...and on my first post after months of browsing.

Ocellia wrote: »

Banker’s bonuses. We can influence the outcome!

Significantly; no, you can't.

Ocellia wrote: »

It seems that nowadays, Banks are just a larger version of a Betting Office.

Really? Banks are? Not stock brokers? Most of the banks debts were down to toxic loans; people who valued their companies at more than they were worth, borrowed money from the bank, went bust and the bank had to foot the bill. Places like Lehmanns were investment banks which took massive gambles with peoples money...retail banks took gambles on the people they invested in. I'm not saying it doesn't help the investee but the investment banks brought the value of everything down and spirilled from there.

Ocellia wrote: »

Bankers spend most of their time buying and selling from each other in a financial version of Musical Chairs, except the music never stops.

Again, before posting, distinguish between broker and banker. I work for one of the UK's biggest share dealers, we buy and sell millions of shares a day...but we don't gamble! We act upon instructions ("execution only") and satisfy a customers need. Again, certain brokers gamble with money...and these are not 'banks' as we know them.
And, I know it sounds harsh, but the people who gave their money to the brokers knew the risks!

Ocellia wrote: »

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?

You really need to think before posting. Do you get anything for free? A commission is a price for a service. In my environment; it's the customers choice to play the market...and to do so they need to be regulated in some form. A commission isn't just a way of making money...it's used to provide a service, satisfy a need, cover against risk, give you the ability to do so.

Ocellia wrote: »

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!

"Wow, all these big time banks have lost all their business, come to us and we've done exceptionally well! Let's reward everyone for their hard work."
See a circle being drawn? Yes, mutuals reward a customer...but these will be at fixed ratio's the company will have protected and can be changed (like any normal dividend) so don't always believe the bumph.

Ocellia wrote: »

Shall we start to use our financial clout to change things? It seems the Government can’t.
We can!

Chris in Bristol

Good luck with that one!

I'm not trying to shoot my mouth off but, as justified with the post above, get a first post right! A 'bank' can mean many things...and we know which ones you're on about. But quite a lot of the risks taken by the big retail banks was down to a lot of trust in people who squandered it.

As for the main topic (bonus); high level ones are inflated and excessive...we'll agree there. But look at the small guys. Some people I work with are on £13k which (for inner city, FT and dodgy hours) isn't massive amounts. A bonus is a way of saying thank you for their hard work...it won't be life changing but helps. Again, it goes back to please think before posting, take in the bigger picture and think about it. It riles me when people say "people in banks shouldn't get bonus's" as a general term.

chambta

I'm all in favour of staff in bank branches getting nice bonuses. But then I would say that wouldn't I?

bumpoowee

jambosans wrote: »

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

I would love to join the co-op too if they weren't hopelessly incompetent.

jambosans

bumpoowee wrote: »

I would love to join the co-op too if they weren't hopelessly incompetent.

Speaking from experience? They always top out in customer satisfaction polls (normally below Smile and First Direct). That said, no doubt their small size in comparison to the Big Four helps. Seriously though, I have considered joining, mainly for their ethical policy. The branch issue, although not a big deal, is somewhat inconvenient. I visit Bank of Scotland and Lloyds TSB once or twice every few months (I use Internet Banking and Telephone Banking mainly), but it is nice to know if I ever want to speak to someone face-to-face (and be sold a credit card, ha), there is always a branch near by. I probably could live without easy branch access, but BoS and LTSB haven't annoyed me enough to prompt a move.

bumpoowee

jambosans wrote: »

Speaking from experience? They always top out in customer satisfaction polls (normally below Smile and First Direct). That said, no doubt their small size in comparison to the Big Four helps. Seriously though, I have considered joining, mainly for their ethical policy. The branch issue, although not a big deal, is somewhat inconvenient. I visit Bank of Scotland and Lloyds TSB once or twice every few months (I use Internet Banking and Telephone Banking mainly), but it is nice to know if I ever want to speak to someone face-to-face (and be sold a credit card, ha), there is always a branch near by. I probably could live without easy branch access, but BoS and LTSB haven't annoyed me enough to prompt a move.

Yeah, signed up for an account on the back of the £100 incentive if you pay £800 a month in for 3 months.

They then failed to pay it after lying that my payment had been delayed several times and then said I wasn't entitled to it despite me confirming that I would be several times with numerous employees of theirs before opening the account. Eventually got the money along with a condescending letter implying I was in the wrong and was never entitled to the offer but that they would make the payment from goodwill.

Also the internet banking is garbage and looks like it was written by a 15 year old on 2 weeks work experience.

Maybe I was just unlucky but I didn't see anything good about the bank to be worthy of giving them another chance, and I closed my accounts.

fozzeh

To further justify the point, check BBC News -
UK banks accept curbs on bonuses.

"While the curbs do not limit bonuses, the changes will include the banks having to disclose all such payments.
The chancellor said UK banks were leading the way, and he expected them to set the global standard for others."

Bullet 3 is something I knew would be happening. Deferred share scheme bonus plans will be a thing of the future.

chambta

No distinction made between bonuses achieved by investment bankers and those of branch staff which may be a few £s a quarter reward for good performance. Is it to be assumed these won't affected?

opinions4u

fozzeh wrote: »

Bullet 3 is something I knew would be happening. Deferred share scheme bonus plans will be a thing of the future.

And what, precisely, is this meant to achieve?

A certain Andy Hornby took all his bonus payments via a deferred share scheme.

It didn't stop HBOS tanking, did it?

He did lose 95% of their value though .

Extant

I think we all know the UK won't take any strong action unless the US does first. Not because it's a "poodle" issue, but because we "share" a pool of bankers who spend their lives moving from one side of the pond to the other. The UK isn't going to do anything that strong without the US doing so first - the Government cannot reasonably risk the financial equivalent of a brain drain and losing London's status as a premier economic center.

(For disclosure I'm from over there, so you can call me arrogant if you want.)