Dutch bankers' bonuses axed by people power

[AtW]

ING is primarily a retail bank.

Good.

[d000hg]

AtW how do you reconcile your hard-line socialist attitudes with the fact you are engaged in capitalist enterprise?

[AtW]

AtW how do you reconcile your hard-line socialist attitudes with the fact you are engaged in capitalist enterprise?

I am not a socialist - I am not calling to tax to death successful companies, what I can calling is to make sure tax system is used to restore justice when criminal system is incapable of dealing with the problem - people who signed off those "triple A" securities should have been sharing jail with Madoff, rather than being retired with massive bonuses and pensions.

It's the fundamental principle - failure should not be rewarded. When company goes bust people lose jobs, they don't get bonuses! This is total socialism that bailout happens and people who are responsible for failure not only keep jobs (mostly) but also get bonuses paid out by taxpayers or even private shareholders in some cases.

[Mich the Tester]

I am not a socialist - I am not calling to tax to death successful companies, what I can calling is to make sure tax system is used to restore justice when criminal system is incapable of dealing with the problem - people who signed off those "triple A" securities should have been sharing jail with Madoff, rather than being retired with massive bonuses and pensions.

That's really the ratings agencies, although I would say doesn't relieve the bank directors of responsibility.

[AtW]

That's really the ratings agencies, although I would say doesn't relieve the bank directors of responsibility.

Directors should not be making decisions solely on the basis of someone else setting a grade - frankly, proper banks should use their own brains to decide level of risks involved: having a handful of rating agencies is just sharing systemic risk (not that they cared with short term bonuses and complete lack of responsibility for their actions).

Even if directors took those ratings they should have kept an eye on liquidity and risk - being so dependent on single particular (temporarily very profitable) asset that can turn into illiquid paper was (IMHO) criminal negligence that was driven by desire to max out profits.

HTH

P.S. I used to work for a bank over 10 years ago.

[d000hg]

It's the fundamental principle - failure should not be rewarded. When company goes bust people lose jobs, they don't get bonuses! This is total socialism that bailout happens and people who are responsible for failure not only keep jobs (mostly) but also get bonuses paid out by taxpayers or even private shareholders in some cases.

If those doing the bailouts didn't stipulate what the money could be used for, tough. Even if they did, the company should retrieve bonuses not the employees have them retrospectively taxed.

If your employer overpays you they can demand the money back. If they paid bonuses illegally, same applies. The government stepping in like this is moronic.

[AtW]

If those doing the bailouts didn't stipulate what the money could be used for, tough.

Sure, whoever gave money was moronic as it wasn't their money in the first place.

That does not mean that situation can't or shouldn't be rectified later - better later than never.

[Peoplesoft bloke]

I am not a socialist - I am not calling to tax to death successful companies, what I can calling is to make sure tax system is used to restore justice when criminal system is incapable of dealing with the problem - people who signed off those "triple A" securities should have been sharing jail with Madoff, rather than being retired with massive bonuses and pensions.

It's the fundamental principle - failure should not be rewarded. When company goes bust people lose jobs, they don't get bonuses! This is total socialism that bailout happens and people who are responsible for failure not only keep jobs (mostly) but also get bonuses paid out by taxpayers or even private shareholders in some cases.

This is one of the few times I agree with atw

[AtW]

This is one of the few times I agree with atw

I take it all back!

Bankers should be entitled to award themselves whatever bonuses they see fit regardless of who pays for it, damage to the economy they make, or just common sense - it's all good and proper: keeps taxes lower on the rest of the folk.

[SueEllen]

If those doing the bailouts didn't stipulate what the money could be used for, tough. Even if they did, the company should retrieve bonuses not the employees have them retrospectively taxed.

If your employer overpays you they can demand the money back. If they paid bonuses illegally, same applies. The government stepping in like this is moronic.

The government is stepping in because it seems those who are running the bank are completely living in another world.

The directors must have been told by a few of their pals not to hand out bonuses as it's bad PR before they did it.