Absolute Greed......
 

http://www.independent.co.uk/news/bu...d-1630307.html

We need a pay rise’ bankers demand

Clampdown on bonuses sparks City calls for 10 per cent increase in salaries

By Mathieu Robbins


Tuesday, 24 February 2009




Senior City bankers are demanding pay rises of up to 10 per cent this year to make up for the clampdown on the bonus culture, a senior City head-hunter has told The Independent.



Shaun Springer, chief executive of Napier Scott, which specialises in recruiting senior bankers for posts in Europe, Africa and the Middle East, said bankers were attempting to rebalance their financial packages in favour of higher salaries. And he predicted that, over the next few years, city salaries could more than double to compensate investment bankers.

“Base salaries are being increased by somewhere between 5 and 10 per cent, by rule of thumb, to compensate for an overall fall in the remunerative package,” said Mr Springer.

“This is being done in recognition of perhaps a long-term change, in which one can envisage basic salaries in the long term doubling or tripling or quadrupling compared to where they are today and bonuses falling by as much as 80 per cent.”

“People used to, say, earn between £100,000 and £150,000 and receive bonuses of 10 times multiples of their base salary,” he continued. “But a trend is now developing where someone has a basic pay of, say, £300,000 but with bonus multiple of only two or three times that.”

His comments expose the prevailing view in the City that bonuses are no longer about rewarding exceptional performance but have become an integral part of bankers’ financial reward packages and came on the day it emerged that Northern Rock will pay bonuses to about 100 top executives despite the nationalised bank losing £1.4bn in 2008.

Yesterday the bank also warned that the number of mortgage customers getting into difficulties was increasing rapidly, and confirmed it would shortly re-enter the mortgage market, increasing its lending by £14bn over the next two years.

The bank said leading executives “who are important to the company’s future” would be given a deferred bonus to be paid in 2010. Another 400 more junior managers will get a deferred bonus worth about 10 per cent of their salary.

Mr Springer’s comments were backed up by other senior City figures.

“Base salaries at investment banks across the board will have to rise to compensate people for the falls in bonuses they have seen,” said one senior corporate finance investment banker.

Banks across the Square Mile have seen their bonuses fall by about half this year as profits – where any were made – have dwindled and regulators have started to crack down on the pay awards handed out to banks.

Average weekly earnings across the UK economy rose by just 2.1 per cent in the year through December, according to data from the Office of National Statistics. That is below inflation.

But on the high street, Royal Bank of Scotland has already raised its employees’ salaries by 10 per cent this year after failing to pay them their guaranteed bonuses for 2008.

Still, there is a fear among banks that pushing up base pay too much too fast may be counterproductive and actually create a regulatory backlash, especially with a large number of Europe’s banks now partly owned by governments after having had bailouts.

“There is a general acceptance that [base] salaries will go up,” said an employee at a European bank that needed a bailout from its government. “But there is still too much political pressure, and we don’t want people to think we are replacing bonuses through the back door – there is a delicate balance.”

But Vince Cable, the Liberal Democrat Treasury spokesman, said it would be “completely perverse” to award bankers salary increases.

He said: “The laws of supply and demand suggest that this is completely perverse, as there is a currently a considerable reduction in the demand for bankers as the sector contracts. If members of the financial services community are managing to pull the wool over the eyes of their shareholders, this suggests that the problems of governance in the sector are even deeper than we imagined. The continued ability of the semi-nationalised banks to put highly paid staff ahead of taxpayers shows that the Government has been far too detached and pathetic in its arms-length approach to them.”

George Mudie, a former Labour deputy chief whip and member of the Commons Treasury Committee, added: “It is indicative of the lack of shame in the industry for the trouble they have caused ordinary people – homes lost and jobs lost. They should be ashamed of themselves.”

Treasury sources expressed surprise at the reports, insisting senior executives at Northern Rock and RBS had agreed to a pay freeze. But they made it clear ministers were unlikely to intervene in pay deals at banks which had not received government support.

The source said: “It’s not obvious why people would feel the need to go for a pay hike of 10 per cent, which would only increase the banks’ costs at a time when other banks in which the state has a stake are freezing pay.”

Brendan Barber, the TUC general secretary said: “Giving ordinary bank staff on low and middle incomes a bit more pay instead of the commission-based bonuses that encourage them to sell loans and other products would be a worthwhile step towards a better banking system.

“But top bankers must think the rest of us are daft if they think that no one will notice bonuses rebranded as basic salary. Government must impose tough conditions.”

Speaking of banks...
 

http://wbztv.com/national/Northern.T....2.943076.html

Bank With Bailout Boost Threw Lavish Bash

A lot of people are still ticked off about the taxpayer bailout of financial companies - and here's another reason - a bank that took more than $1 billion has just thrown a bunch of big parties, sparing no expense.

The private party was lavish; the entertainment, top notch. Grammy winner, Sheryl Crow entertained while hundreds of bankers and clients dined on steak and salmon at The House of Blues on Los Angeles's glitzy Sunset Strip. The Saturday soiree capped a week of partying.

There was dinner at the Ritz while the band "Chicago" played and cocktails in Santa Monica. All were captured by celebrity Web site TMZ. And it was all paid for by Chicago-based Northern Trust Bank - three months after Northern Trust got $1.6 billion in taxpayer's bailout money and laid off hundreds of workers.

Sen. John Kerry, D-Mass., says the party's over.

"It's insulting," Kerry said. "It's disgusting. It defies common sense."

There were partying at the Northern Trust Open - a golf tournament, with the final rounds broadcast by CBS Sports. Northern Trust declined to appear on camera, but released a statement saying:

# The Open contract was signed a year before the government bailout existed.
# No government were funds used for the tournament.
# Government money were used to boost consumer loans, up 21 percent in a year.
# And the event was a shot in the arm for LA's economy.

"The serving staff, the cooks, the caterers, the drivers, the parking lot attendants," said Jack Kyser of the L.A. County Economic Development Corp. "It is a whole long line and these people are quite happy that Northern Trust did have the event."

But with insurance giant AIG caught partying after taking billions in bailout dollars, Merrill Lynch giving billions in bonuses after a bailout, Northern Trust seems deaf to the tone of the times.

"It seems to be a question of values and they don't seem to have the proper values or the proper understanding of what the American people are suffering right now," said Ira Rheingold a consumer advocate

Northern Trust says it was just showing clients appreciation. Angry members of Congress say they'd appreciate if the bank paid taxpayers back.

Hmmmm.......

Northern Trust holds the mortgage on Obama's house in Chicago, the one that Tony Rezko, the convicted felon helped him buy.

Northern Trust also received bail-out $$$$ from us, the schnooks, ergo, tax-payers, when they didn't even ask for it. So before we go lynching the decision-makers at Northern Trust, maybe we should look a little deeper and see more clearly whose hands are really in the cookie jar. Sounds more like typically dirty Chicago politics...............

SuperScout,...
 

Even though having nothing to do with America's Authoritarian Grandiose Misuse or: "Share The Wealth" socialistic dictated nonsense with U.S. Taxpayer Monies that this thread alludes to, your retort to James a supposed EXLRRP(?) or whatever was EXCELLENT! Would also be just as EXCELLENT for any other similarly vile, vicious & typically disruptive & diversionary; "Attack Dog" character assassinating Democrats, concertedly doing so to any quite sensibly & rightfully opposing "Them" & "Their" Ploys.

Because of now Totally Controlling of America: "Democrat/Socialist/Leftist Political Supremacists posing as Liberals" a new variation of an old quip had to be coined,...and/or; "Sore WINNERS" or basically Vindictively Bad Sports even after trouncing opposition.

Besides, Brice? How Dare You belittle THEIR: "Messiah", anyway?
Have you no reverence towards royalty, whatsoever? ;) ;)

Neil

Pack,...
 

Get used to.
Don't automatically & unquestioningly go along with The Quite Lordly Dem Party Dictatorial
Clique, and more than likely than not their hacks or hatchet-men will call you even worse.
Naturally not to your face,...of course.

That's just how it unfortunately things are in America,...and Have Been FOR QUITE SOME TIME.

Neil

When Patriot Files was begun, it was initiated in the spirit of camaraderie!

Granted, everyone has differing opinions and views - it is after all, the nature of the beast!! Not being Will Rogers, we all have met people that we did not like, and even in the service, how many of you can say that you became friends with everyone you met?

When we become overly emotional, and to a point where we engage in threats and childish name calling, regardless of rank or perceived pecker-matches, we have lost the essence of this site!!

And for the record, even Our Founding Fathers got pissed off at each other now and then! For if this were not true, would Aaron Burr and Alexander Hamilton have shot it out? And let us never forget Button Gwinnett who also fell in a duel, or Andy Jackson who blew away a rival for the affections of the lady (Rachel).

And last, but not least, did Roosevelt challenge Hitler and Hirohito to a mano y mano duel - Hell no, and this is how wars are begun!

"Again, are we not all brothers here?" Or will we resort to eternal personal feuds, when not engaged against a mutual enemy? And remember: Lawyers get off and get rich on the tumultuous emotions of others!

“Hell, if they (attorneys) are good (or is that vile) enough, they may even gain a lucrative seat in government!!”

VERITAS (Truth)

Well said Rick. We are all brothers here and that is why I come here.

Hardcore,...
 

Regarding your: "Hell,....................they may even gain a lucrative seat in government!!",
that's actually the problem and has been so For Quite Some Time!

Millionaire & multi-millionaire attorneys or lawyers MAINLY pretty-much rule & have ruled We Americans whether at Local, State or Federal levels,...For Quite Some Time.

Poor Nobodies in general just cannot afford running for office, nor mingle with Rich Supportive Friends looking to even get Wealthier from governmental connections. Also, any such Nobodies alluded to are usually Intelligent People of Honor, Integrity, Forthrightness & Unequivocating Patriotism and/or basically worst disqualifying character traits for American Political Career Panderers for New Voters. Hate loosing well paid & do nothing cushy jobs

Besides, and especially nowadays, others must now also realize that most American Politicians have infinitely less: "Redeeming Social Value",...than Pornographers do Plus, The 7-8 Billion Dollar Pornography Industry adds to The Economy. Whereas American Politics quite differently IS The Largest of All Drains on The Economy, while never satisfying The People nor ever resolving anything,...even when squandering TON$ of U.S. Taxpayer Funds.

Maybe we should hire some Rich Pornographers instead to Secure The U.S./Mexican Border, Rick? They can't possibly do any worse at it than Our Big Spender Bipartisan Rulers have? Pornographers might actually be even cheaper,...since not standardly buying & pandering for every new vote possible, with MY/YOUR/OUR Monies? Makes a lot of sense to me. ;) ;)

Neil

Posts have been removed from this thread. Thread hijacking and personal attacks will not be tolerated. If you have a personal problem with someone please deal with them personally off site or in PM's so that other people may enjoy the site as it was intended.

David,...
 

EXCELLENT!!!!!!!!!!!!! Good Work for Honorable Veterans.

Neil