Thursday, 28 August 2008

Banks Never Lose

Continuing from, all the High Street Banks were asked recently why their CEOs have been getting large bonuses, despite their role in the current financial disaster. They didn't answer, perhaps they couldn't answer. Even the Governor of the Bank of England was quoted saying the bonus system rewards short term behavior and should be changed.

Bob Diamond, the president of Barclays and the head of its booming investment bank, scooped a total payout worth £15.2 million in one year. Under the terms of a three-year scheme based on earnings per share performance at Barclays Capital, Mr Diamond was firmly on course to collect a bumper bonus worth an expected total of £25 million. Five directors at HSBC could share a £120m jackpot!

Meanwhile increasing numbers of homes are in negative equity. Repossessed homes at Northern Rock have risen from 2,215 to 3,710 in the six months, or almost 70%. We are all feeling the strain, except of course for the financial genius's that got us into this mess in the first place, who are getting paid millions with a bonus on top. And thanks to Gordon Brown their is less tax for the very rich, and little financial regulation.