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What is Ozzie on about?
grizzly1911
Posts: 9,965 Forumite
What exactly does this mean?
Libor scandal: RBS bankers must meet fines - Osborne
RBS is in the final stages of negotiations with regulators in the UK and US
Any fines by US authorities on Royal Bank of Scotland over the Libor scandal should be met by bankers not taxpayers, Chancellor George Osborne has insisted.
Who are the bankers? As RBS are largely owned by the state aren't they effectively civil servants in all but name.
They have had a couple of years to sort out contractual employment matters so bonuses should be under the control of the government by now without fear of being take to a scary court.
At the end of the day it is going to come out of the "profits" which are ultimately for the benefit of the government and speeding it's release.
I find it ludicrous that they are being fined by the FSA (as well as the USA). Taxpayer fining itself.....
Libor scandal: RBS bankers must meet fines - Osborne
RBS is in the final stages of negotiations with regulators in the UK and US
Any fines by US authorities on Royal Bank of Scotland over the Libor scandal should be met by bankers not taxpayers, Chancellor George Osborne has insisted.
Who are the bankers? As RBS are largely owned by the state aren't they effectively civil servants in all but name.
They have had a couple of years to sort out contractual employment matters so bonuses should be under the control of the government by now without fear of being take to a scary court.
At the end of the day it is going to come out of the "profits" which are ultimately for the benefit of the government and speeding it's release.
I find it ludicrous that they are being fined by the FSA (as well as the USA). Taxpayer fining itself.....
"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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Comments
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Never mind fines.
Peoiple should be going to jail over this.
It is theft and fraud on a grand scale.0 -
grizzly1911 wrote: »What exactly does this mean?
Libor scandal: RBS bankers must meet fines - Osborne
RBS is in the final stages of negotiations with regulators in the UK and US
Any fines by US authorities on Royal Bank of Scotland over the Libor scandal should be met by bankers not taxpayers, Chancellor George Osborne has insisted.
Who are the bankers? As RBS are largely owned by the state aren't they effectively civil servants in all but name.
They have had a couple of years to sort out contractual employment matters so bonuses should be under the control of the government by now without fear of being take to a scary court.
At the end of the day it is going to come out of the "profits" which are ultimately for the benefit of the government and speeding it's release.
I find it ludicrous that they are being fined by the FSA (as well as the USA). Taxpayer fining itself.....
The grapevine says that the fine is going to be paid out of the bonus pool. That means that people in parts of the bank that had nothing to do with the LIBOR thing will lose a big chunk of their bonus as a result of the misdeeds of their colleagues.
As a former banker who is still in the finance industry I think that's a good thing. Pour encourages les autres and all that.
I worked in a bank where the head of the bonds (fixed income) desk made a very bad call and we lost millions between us as a result on other desks in bonuses forgone. I think that was a good call by the boss although I wasn't so keen at the time.0 -
By taking the fine out of the bonus pool it will now weed out the extreme risk takers that possibly were responsable in part for the credit crunch that we all went through.
Banking must be knowing your market 100%, which can only be achieved with years of experience and will hopefully remove the bankers who bet on situations which are far too much a long shot bet.0 -
By taking the fine out of the bonus pool it will now weed out the extreme risk takers that possibly were responsable in part for the credit crunch that we all went through.
Contrary to popular belief you can't just take any old risk as a banker and never could.
I'll explain the risk side another day.0 -
The grapevine says that the fine is going to be paid out of the bonus pool. That means that people in parts of the bank that had nothing to do with the LIBOR thing will lose a big chunk of their bonus as a result of the misdeeds of their colleagues.
As a former banker who is still in the finance industry I think that's a good thing. Pour encourages les autres and all that.
I worked in a bank where the head of the bonds (fixed income) desk made a very bad call and we lost millions between us as a result on other desks in bonuses forgone. I think that was a good call by the boss although I wasn't so keen at the time.
Don't disagree but should there even be a bonus pool, of this magnitude, in the first place?
I appreciate the need to keep talent etc."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Don't disagree but should there even be a bonus pool, of this magnitude, in the first place?
There's always someone else who will offer the "talent" the package.0 -
Thrugelmir wrote: »There's always someone else who will offer the "talent" the package.
Without decent references?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Without decent references?
More good apples than bad ones in the barrel.
Plenty of opportunities outside of investment banking as well.0 -
grizzly1911 wrote: »Don't disagree but should there even be a bonus pool, of this magnitude, in the first place?
I appreciate the need to keep talent etc.
It's a good point.
I have my doubts that front office staff are worth anywhere close to what they are paid as the majority of the profits they make are driven by the bank which sits behind them rather than from their own talents.
The Talent in Investment Banks these days is mostly on the IT/analysis side. Those are the people that should be getting the serious money IMHO but the banks are generally managed by people who came up through the trading side so that is what is recognized.0 -
grizzly1911 wrote: »Without decent references?
You don't need references.
Only a reputation.
What you actually did, or can do is usually hidden behind the smokescreen of gossip and far fetched tales.'In nature, there are neither rewards nor punishments - there are Consequences.'0
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