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

[Bunk]

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.



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

Yep, but that bonus pool will only include the individual bonuses which are over £10k. It's to discourage the banks from paying big bonuses and encourage them to build up capital reserves.

[BlasterBates]

The trouble is that banks weren't making money at all they were just involved in a huge pyramid scheme. I wonder how much these banks actually contributed after the mess. The trouble is if it happens again, we'll end up like Iceland with savings basically wiped out. There's still a whole load of toxic assets to write off. Are the bankers just hiding these just so they can pay themselves a huge bonus now and own up to it next year?

I'm all in favour of real Entreprenuers such as Bill Gates, Steve Jobs and Branson with his space ships earning money they deserve it. But bankers earn money because they got the job, not because of ability. The traders are given a whole load of info from the researchers and then they play the markets a bit. Most people with a bit nouse can get the hang of it. The ones that do well are just the ones that happen to be on the right trading desk. I doubt you'll find a credit derivatives trader that actually didn't lose millions.

In any case Bankers should be judged on how they finance real companies, not on how well they gamble.

Agree with the FT on this, tax em until the pips squeak.

[Moscow Mule]

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.

Seems a bit harsh on the secretaries & support staff who quite look forward to their £5k bonus each year....

[Bunk]

Seems a bit harsh on the secretaries & support staff who quite look forward to their £5k bonus each year....

That's the point. Bonuses under 10k are unnaffected.

[Moscow Mule]

That's the point. Bonuses under 10k are unnaffected.

So

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

only applies to bonus over £10K?

[Bunk]

So



only applies to bonus over £10K?

Yes, the bonus pool hit by the 50% tax is made up of bonuses over £10k

[Moscow Mule]

Yes, the bonus pool hit by the 50% tax is made up of bonuses over £10k

Laws generally have to be quite tightly defined in what they apply to, so I would expect that's going to be easy to "account around".

[AtW]

Seems a bit harsh on the secretaries & support staff who quite look forward to their £5k bonus each year....

They kept their jobs - otherwise if banks went bust (as they should have been) they'd be the first to lose their jobs and also it would be the hardest for them to find new one.

The biggest bonus in recession is keeping one's job.

[Bunk]

Laws generally have to be quite tightly defined in what they apply to, so I would expect that's going to be easy to "account around".

Which they'll then solve by bringing in more tax rules ala IR35 to make things even more complicated

[AtW]

Which they'll then solve by bringing in more tax rules ala IR35 to make things even more complicated

Tax profits of banks - if they get no profits left after tax they should not be giving any bonuses.

Simples.