When are the bankers going to be punished for their failure?

[AtW]

Personally I believe we should be encouraging banks to set up here, not encouraging them to leave.

I agree.

Problem is that almost all banks are gone already - the remaining entities are called "banks", but in reality they have become casinos that were gambling away not just depositors' money but also everyone else in the economy.

Even mutuals/building societies got sucked into buying derivative bulltulip way beyond their remit - their job should have been to invest in this country, maybe in ventures that export stuff or discover new worlds, but as soon as they got into gambling that resulted in lack of investment in this country. Unless you call having bankers buying another set of houses as "investment". I guess that can sustain a million or so jobs in London, the rest of UK residents are redundant to this party of life.

[DimPrawn]

I agree.

Problem is that almost all banks are gone already - the remaining entities are called "banks", but in reality they have become casinos that were gambling away not just depositors' money but also everyone else in the economy.

.

Sadly I agree with AtW. What is required is strict regulation and definition of banks vs investment companies.

Banks should be restricted to simple lending, loans, mortgages, offering savings and pension products only. Any money these banks invest should be limited to AAA rated bonds, gilts only. They should not be allowed to sell the mortgages on, they must hold them and they must hold significant capital. Simple banking only, all lowish risk.

Everything outside this should be classed as investment companies. They can do whatever they like, but if they lose money, tough, they go bust.

Keep them separate and offer no protect to investors, shareholders or employees of investment companies.

[Lockhouse]

The good thing about a new Glass-Steagall act is that there'll be lots of work for us - Boomed!

[BrilloPad]

So is it true that first £20k of bankers' bonuses is going to be taxed at 50%?

[BlackenedBiker]

Sadly I agree with AtW. What is required is strict regulation and definition of banks vs investment companies.

Banks should be restricted to simple lending, loans, mortgages, offering savings and pension products only. Any money these banks invest should be limited to AAA rated bonds, gilts only. They should not be allowed to sell the mortgages on, they must hold them and they must hold significant capital. Simple banking only, all lowish risk.

Everything outside this should be classed as investment companies. They can do whatever they like, but if they lose money, tough, they go bust.

Keep them separate and offer no protect to investors, shareholders or employees of investment companies.

That really make sense: go into politics DP

[Bunk]

So is it true that first £20k of bankers' bonuses is going to be taxed at 50%?

The BBC are saying it's anything over £10k.

[DimPrawn]

The BBC are saying it's anything over £10k.

They'll just pay themselves a double bonus.

Sorteeed.

[Bunk]

I've just read more about this. The banks will get hit with a one off 50% tax if they pay bonuses of more than 10k.

More worryingly the chancellor says he expects the IR to be aggressive in closing down any avoidance (evasion shirley?) schemes. Anyone want to bet there will be unintended and unforeseen consequences

[jimjamuk]

if its a one off tax - shirley they will pay the max allowed - 10 or 20k - then defer the rest of it for a bit and take it all later.

thats what i'd do anyway - but then I'm a capitalist pig-dog......

These are clever people - they will just avoid paying it

[TroubleAtMill]

From what I understand from listening to the radio this morning (admittedly it was a bit hazy, being the morning and all) the institution will have to declare the size of bonus pool, and the tax will be slapped on that.

if its a one off tax - shirley they will pay the max allowed - 10 or 20k - then defer the rest of it for a bit and take it all later.

Then the gov will just include it in the next budget?