Bank bonuses

[Zippy]

Trouble is, the people who traded all those toxic creditty crunchie derivativey thingummyjigs were generating a profit for the bank and were rewarded for doing so. Who's to say that somebody who's generating a profit now isn't digging the next big hole that'll bankrupt the bank?

You make a good point but I was thinking of RBS where they have made a HUGE loss and will still be paying bonuses. That's just plain wrong.

[Zippy]

So all those people who "made" billions with their dodgy schemes deserved their bonus did they?

If the schemes were known to be dodgy they should have been arrested. Maybe some of them will be ..

[Rookie]

You make a good point but I was thinking of RBS where they have made a HUGE loss and will still be paying bonuses. That's just plain wrong.

Totally agree. The reward system in this industry is ridiculous. It's on a par with paying car salesmen commission for selling dodgy cars.

[Sysman]

They don't necessarily have to leave. Some of the people we're talking about work absolutely insane hours, with the expectation they'll be rewarded with a decent (Dunno if anyone is expecting big this year - was out with a couple of guys I know in IB last night, and they reckon 60% of what they got last year would be better good).[/b]

Alternatively aren't insane hours a major cause of mistakes?

If you don't reward them for the hours put in, they won't put them in with the obvious consequences for the bank in question.

The obvious consequences I see from working normal hours are that they'll be able to lead a more balanced life, have less broken homes, incur less in divorce costs etc, I would have thought that the last person you want in charge of squillions is someone who's permanently suffering from nervous exhaustion and maybe resorting to a cocktail of drugs and booze to cope.

[Mich the Tester]

I would have thought that the last person you want in charge of squillions is someone who's permanently suffering from nervous exhaustion and maybe resorting to a cocktail of drugs and booze to cope.

[Andy2]

Forget the bonus , they should thank their lucky stars that they are in a job courtesy of taxpayer's money and not standing in dole queue.

[BrilloPad]

If the schemes were known to be dodgy they should have been arrested. Maybe some of them will be ..

They were virually forced on the banks by the Clinton administration. Loans for poor people. Not sure the teaser rates were a good idea : but not definetly dodgy.

My point being that what can look sensible one day looks f**king stupid the next. And vica versa.

[Mich the Tester]

They were virually forced on the banks by the Clinton administration. Loans for poor people. Not sure the teaser rates were a good idea : but not definetly dodgy.

My point being that what can look sensible one day looks f**king stupid the next. And vica versa.

Well, giving big fat mortgages to unemployed people or low wage earners in temp jobs never really looks all that bright.

[Ruprect]

If the person getting the bonus has generated good profits for the bank, yes.

If the person has apparently been responsible for pi55ing away billions of pounds, no.

Isn't this exactly the point though? 500 people p!ss away all that money, they get sacked, and everyone else left gets a bonus despite being in the hole to the taxpayer. Is there no collective responsibility at all then?

[BrilloPad]

Well, giving big fat mortgages to unemployed people or low wage earners in temp jobs never really looks all that bright.

Go tell it to Clinton. Will he have to pay back his salary?