Show the bonus Bankers with our feet/money

boomish

OK so unless you lived on the moon you can't have missed how much these big bounses the bankers are getting at the moment , right after they have been bailed out with our money!

So my wife said to me last night after seeing the news on the governments climb down over curbing these bonuses, "I feel like taking all our money out of the bank" after a few seconds thought I said why don't we? I have been with Barclays for over 30 years, so how hard can it be? Will it make a difference I dunno but maybe if others did it as well it might.
Does anyone know what bank isn't paying out huge bonuses? This could be a great topic for MSE, not that I want a run on the bank but it might just show the people won't put up with being ripped off.
Any advice welcome..

Cmdr_Bond

I too would be interested in knowing this (as I am about to move accounts)

So questions -

Which were originally bailed out?
Which banks were bailed out after taking over other banks?
Which banks have not been bailed out at all?

opinions4u

Are banks the only companies in the country that pay bonuses?

Do places like M&S pay their executives nothing in addition to salaries?

Does Vodafone incentivise it's boardroom with a "succeed and we'll give you nowt" motto?

Did the bloke who turned Tesco in to an international giant never get a penny extra for his efforts?

Stop using your mobile phone. Give up using supermarkets. Don't buy any new clothes. Withdraw your money from the bank (the one you name doesn't even have state ownership).

Your life will be better for it.

Loughton_Monkey

Advice?

Well for a start, contact a certain "Eric Cantana" [apparently some French footballer m'Lud] and find out how to do it. He has experience of arranging a 'mass withdrawal' throughout France.

My understanding is that this was highly successful, achieving something like €3,542.65 withdrawn. Enough to make the French banks quake with fear. Had the said 'Eric' actually taken part himself, then who knows? The figure might have increased to €5,000 and really bought the system to it's knees!

opinions4u

Cmdr_Bond wrote: »

Which were originally bailed out?

Northern Rock and RBS. Although it's likely that every single bank trading in the UK has benefited from the "Special Liquidity Scheme" and continues to do so. Of course Bradford & Bingley's mortgages were nationalised and the savings handed on the cheap to Santander.

Which banks were bailed out after taking over other banks?

Lloyds TSB / Lloyds Banking Group. They did the Government a favour by rescuing HBOS.

Which banks have not been bailed out at all?

Co-op Bank. Their chief exec has just had his salary doubled. Barclays - but then they sold out a large share of their business to the Arabs. HSBC - although they probably wrote off more sub-prime debt than any other UK bank. Santander - what's their exposure to Spain and South America these days?

Enjoy unpicking the "who's whiter than white" approach to banks and building societies.

daveyjp

All banks benefitted from the bail out, Barclays and HSBC always seem to be excluded, but if the bailed out banks had gone under Barclasy and HSBC would have taken a serious hit as they all borrow off each other.

All banks also benefited from the increase in Govt backed guarantee.

Find a building society, plenty to choose from:

http://www.bsa.org.uk/aboutus/buildsocmember.htm

Don't discount Credit unions for savings.

scott_lithgows

According to bbc,s Robert Peston,if 1 in 33 savers in a bank withdrew all their cash it would cause a run on the bank.So to get the taxpayers cash back it might not be the best policy.However the threat of customers doing it on a certain date might make them think again!

I,ve already jumped ship from B+B,s leaky santander lifeboat to the 100% British Yorkshire Building Society and glad that I did.

choc_mouse

Barclay's say that banks shouldn't be bailed out by tax payers (http://www.bbc.co.uk/news/business-12159627). I don't think they were bailed out at all unlike Northern Rock, LTSB, RBS etc. So surely they've done nothing wrong but you are trying to punish them for honouring their contracts to their staff?

The banks will know best for their (global) market. If they don't pay well, top quality staff can easily move abroad and drain our economy altogether.

Do we really have a right to micro-manage everyone's pay packet? Don't we entrust the government with that with our votes?

jackieblack

choc_mouse wrote: »

Don't we entrust the government with that with our votes?

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

NFH

I disagree with all of you who are objecting to bankers' bonuses. My following points relate specifically to those who work in the wholesale financial markets divisions of banks (e.g. traders), which is whom the bulk of City bonuses go to.

• If you hire someone to do a task, then you need to pay the going rate. This principle applies whether you're hiring a plumber to fix your blocked pipe or a trader to generate revenue for you.
• If British banks are forced to reduce the amount they pay to their staff, those staff will simply go to work for foreign banks, of which there are plenty in London. The labour market in investment banking is highly mobile within London. The result would be that British banks would be less profitable as they would not attract the best people.
• If all investment banks in London are forced to reduce the amount they pay to their staff, those staff will simply relocate to competing financial centres in our time zone, for example Zürich or Frankfurt.
• Those receiving bonuses pay large amounts of income tax on them. Traders typically spend rather than save their bonuses which generates wealth in the economy. As a country, we should try to keep them, not to lose them.
• If a trader works hard and through his skill makes £10 million for the bank that employs him, why shouldn't he receive a bonus of £1 million?
• Banks which have been bailed out need to get themselves back on track and create a profit. It's therefore prudent for them to hire top traders who will generate large profits. The bonus is paid only if the trader (and his team) makes that expected profit.
• Should a bank hire a mediocre trader on a total package of £100k who will generate £1 million of profit, or a top trader on a total package of £2 million who will generate £20 million of profit? Common sense would say the latter.

It annoys me when so many people complain about the headline figure of bonuses without understanding the economics of why they're paid or understanding anything about investment banking. It's just jealousy. Although I work in investment banking myself, I'm an independent consultant so I don't receive bonuses. However, those that do earn bonuses thoroughly deserve every penny.

FoggyBrain_2

scott_lithgows wrote: »

According to bbc,s Robert Peston,if 1 in 33 savers in a bank withdrew all their cash it would cause a run on the bank.So to get the taxpayers cash back it might not be the best policy.However the threat of customers doing it on a certain date might make them think again!

I,ve already jumped ship from B+B,s leaky santander lifeboat to the 100% British Yorkshire Building Society and glad that I did.

YBS also do a reasonable Cash Transactor account, very similar to a basic bank account, for those that still want some of the bells and whistles.