Alice in Blunderland

June 8th, 2012 by


And still the looting goes on

Dear Friends

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.

 

FINANCIAL TIMES

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.

FT.

 

 

 


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Ian Taplin

Ian Taplin, 53 ,a British Citizen- is Whistle Blowing on UKs largest Bank, Lloyds Bank .

Ian Taplin worked at Lloyds Bank from 2005-2010 and was then unlawfully fired for insisting his Complaints alleging dishonest actions by Senior Directors were properly dealt with.

He believes he has substantial and robust evidence of fraud and corruption -being tolerated by Senior Directors of Lloyds Bank.

These Senior Directors obstructed Ian Taplins Formal Complaints and then proceeded to intimidate and bully Mr Taplin who refused to withdraw his Complaints.

Ian Taplin will be submitting Formal Complaints to the UK Regulator and the UK House of Commons in 2012. He plans to lawfully publish these Formal Complaints on this site.

He has been fully supported by Theresa May MP, the Home Secretary and Senior Government Minister.

Ian Taplin is the Lloyds Bank Whistle Blower. Check out his background on;

http://www.dontbankonlloydsethics.com/about/ He can be contacted at iantaplin@hotmail.co.uk