I have selected an article from the Financial Times, which you can read below, because it shows that nothing has changed .
The Financial Times has scrutinised the senior level pay of 13 global banks.
This article paints an alarming picture that the banking leaderships are effectively trashing their own shareholders and looting their own banks
These banks are still underwritten by you -the taxpayers and the citizens.These banks are still pregnant with dangerous risks and they are still too big too fail.
Alarmist? Scaremongering ?
No ;this is real ;check it out now.
Meanwhile businesses are crying out for affordable credit to survive.
And the bankers are getting richer at our expense taking the dosh from our own tax paying pockets;becoming obscenely richer ever richer in a gross and ugly re- run of Wall Street’s Gordon Gecko’s
“Greed is good.” .
Meanwhile the UK is grinding to a halt desperate for investment for jobs and infrastructure -;especially in the regions.
The Bank of England then tries some “Quantitive Easing” which is printing more money and decides not to invest the money into jobs and infrastructure- where it is most needed.
Guess where the new money goes?
To the banks!
The new printed money goes to the banks- in a Lewis Caroll tale of the mad men Central Bankers drinking magic mushroom tea-hallucinating their way through a collapsing economy; doling out the fresh cash -as if pouring smarties into the wide open expectant bankers’ mouths -which are foul smelling and rotting away with the sugar coated riches.
“Why?”-asks Alice in Blunderland.
“Why are you giving the money back to the banks who are the very problem?”
The hallucinating Central Bankers replies ;-
“Its the model !Its the model! Its the PHD MIT mathematical geniuses’ rocket scientific model! Stupid!”
“What happens if the model is wrong?”asks the quizzical Alice in Blunderland.
“Wrong ! Wrong ! Is that all you ever think about ?” exclaims the hallucinating Central Bankers drinking more thirstily from the cup of the magic mushroom tea.
“Wrong !Wrong! Wrong!”-the Central Bankers chorus sings out in a mocking chant.
“Yes” Alice in Blunderland replies in her calm voice.
“Whats wrong in being wrong- Mr Central Bankers and admitting you are wrong?”
“Wrong? What? Are you mad Miss Alice in Blunderland ? Are you suggesting we are wrong in not admitting we are wrong?- the Central Bankers laugh and sneer.
“Yes absolutely! ” replies Alice in Blunderland who brightly skips away- searching for her friends – Mr Logic and Mrs Reason.
How are we going to clear up this mess and stop this greed- seemingly out of control?
How long before the streets become more alive with seething anger because this government;-
“Just doesn’t get it.”
Ian Taplin- the ungagged Lloyds Bank Whistle Blower .
Posted as comment.
June 5, 2012
Redistribution and banking profits
Bankers tend to feel they have been bashed too much since the financial crisis. But in one respect they have not been bashed enough. Financiers have continued to pay themselves breathtaking sums of money even as the returns they deliver to investors have shrivelled.
The Financial Times has examined what has happened since the crisis to the payrolls of 13 global financial institutions – expressed as a proportion of pay plus net profits (including those distributed as dividends). This approach allows you to see how the “cake” has been shared out between employees and shareholders.
What the analysis shows is that the lion’s share has been taken home by the bankers in the form of pay and bonuses, rather than paid out to investors or left in the business to support lending activity. The part represented by payroll has on average gone up from 58 per cent in 2006 to 84 per cent last year. Meanwhile, the share accounted for by dividends has slumped by two-thirds – from 15 per cent to just 5 per cent
Investors are, understandably, beginning to kick against their treatment. The so-called shareholder spring has included a rash of pay revolts against large banks, including Citigroup, Barclays, Credit Suisse and UBS.
This can and should intensify. Most banks have remuneration policies not dissimilar to those of Premier League football clubs. They pay up for talent with the aim of securing a slot in the leading pack, in the hope that this will in turn generate the revenues that allow them to out-pay competitors. It is an approach that is ill-suited to a shrinking market.
It is to be welcomed that investors have finally understood the need to focus on absolute rather than relative levels of pay. In straitened times, bankers’ pay scales can only be maintained at their expense. As part of the fightback, investors should force changes to the structure of compensation plans. Most continue to be based around inappropriate
measures, such as return on equity, share prices or total shareholder return. These encourage bankers to take more risk. Banks’ return on assets – an unleveraged measure of performance – has barely changed in decades.
Moreover, at a time when many banks in Europe remain severely undercapitalised, such remuneration policies hinder efforts to rebuild their balance sheets. Many banks are neither retaining sufficient capital to return to health, nor providing sufficient return to encourage investors to top up the equity. Only one European bank, UniCredit, has raised a significant amount of fresh equity this year.
The persistence of high pay is not only weakening banks. It raises questions about whether they genuinely operate in a competitive market. Policy makers should not leave all the heavy lifting to investors as they seek to force banks to adopt more realistic policies. If the bankers drag their feet, regulatory muscle may be needed to enforce a more rational division of the spoils.