Finally a Brexit Benefit

Whilst their pay is obscene, you can kind of see their point that it doesn't stop them paying bankers large amounts it just means they have to pay them large fixed salaries which increases costs, which will make us less financially attractive to base bankers in. Very poor timing of any such change however with distinct lack of reading the room / nation
 
ThatFragranceGuy said:
Whilst their pay is obscene, you can kind of see their point that it doesn't stop them paying bankers large amounts it just means they have to pay them large fixed salaries which increases costs, which will make us less financially attractive to base bankers in. Very poor timing of any such change however with distinct lack of reading the room / nation
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100% agree with this, but the Tories don't care about reading the room. It's like anything else with their type of economics, if the banks want to pay the salaries it is up to them, we shouldn't be allowing any increase in the cap at all- it is the same thought process as putting up taxes on Amazon, Starbucks and the like make it 'less attractive' to invest, it's a total and utter myth. People will work in the city, large corporations will still invest and sell within this country, nobody would cut their nose off that badly- it's about time people woke up to what is happening here- the public sector can't have an inflation sized rise, but bankers don't worry they can have whatever money they like at the top end. There is more than enough money to go around, it's just in the hands of the wrong people.
 
Huddboro said:
it is the same thought process as putting up taxes on Amazon, Starbucks and the like make it 'less attractive' to invest, it's a total and utter myth.
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true free marketeers, would say that ensuring that starbucks and amazon pay tax creates a level playing field, if these chains do not feel that they can make enough profit and leave, a gap will appear in the market and new business(es) will occupy that gap.

This isn't true free market economics, it's corruption or at the very worst weak leadership.
 
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ThatFragranceGuy said:
Whilst their pay is obscene, you can kind of see their point that it doesn't stop them paying bankers large amounts it just means they have to pay them large fixed salaries which increases costs, which will make us less financially attractive to base bankers in. Very poor timing of any such change however with distinct lack of reading the room / nation
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That's not the issue, it's an EU measure to prevent excessive risk taking in pursuit of bigger bonus payments.

We've been down this road before and we all had to endure years of austerity.

It's a crazy move and one the Bank of England is firmly against.
 
Jonny Ingbar said:
That's not the issue, it's an EU measure to prevent excessive risk taking in pursuit of bigger bonus payments.

We've been down this road before and we all had to endure years of austerity.

It's a crazy move and one the Bank of England is firmly against.
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But as per the article that has been managed by introducing laws to make people criminally liable and bonuses can be clawed back years later, sometimes they aren't even paid for the year they are awarded to prevent this behaviour and lag 1-3 years

When people don't perform you don't pay them their bonus, but you've got to pay them a salary regardless so having a ton of investment bankers in massive salaries is a guaranteed cost Vs one where those costs are contingent on returns. They're getting paid that amount anyway but one means a business has to pay that amount out even if they lose money and one means they can not pay out in that circumstance.

It's a bit like mortgages had affordability rules brought in to prevent over lending but those have been scaled back because controls have been put in to prevent that so it was just creating extra checks and stress / costs
 
ThatFragranceGuy said:
But as per the article that has been managed by introducing laws to make people criminally liable and bonuses can be clawed back years later, sometimes they aren't even paid for the year they are awarded to prevent this behaviour and lag 1-3 years

When people don't perform you don't pay them their bonus, but you've got to pay them a salary regardless so having a ton of investment bankers in massive salaries is a guaranteed cost Vs one where those costs are contingent on returns. They're getting paid that amount anyway but one means a business has to pay that amount out even if they lose money and one means they can not pay out in that circumstance.

It's a bit like mortgages had affordability rules brought in to prevent over lending but those have been scaled back because controls have been put in to prevent that so it was just creating extra checks and stress / costs
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It's all smoke and mirrors.

Banks will pay what they decide to pay in terms of salaries - complaining they're being forced to pay more because they can "only" suppliment salaries with bonuses worth 2 times that is absurd. How many industries operate in such a way?

Of course banks perform an important role in the economy, but equally banks only aim to to make more money and that carries risks, because invariably the assets aren't theirs.

If this is allowed to happen then we've learned nothing from the financial collapse, which cost eye watering amounts of public money to bail out.
 
They'll be deregulating the financial sector soon as well, this in a desperate attempt to keep London as a relevant financial centre after Brexit. This could go badly wrong, when it does we, the taxpayers, will be bailing them out again.
 
Tax Research UK Richard Murphy’s take on it.

Kwarteng's economic strategy becomes clearer. Growth is going to depend on the City of London and its ability to fleece the world of value on behalf of a selected few, at cost to people and planet. This is going to end in tears....
 
Why do we want to
ThatFragranceGuy said:
Whilst their pay is obscene, you can kind of see their point that it doesn't stop them paying bankers large amounts it just means they have to pay them large fixed salaries which increases costs, which will make us less financially attractive to base bankers in. Very poor timing of any such change however with distinct lack of reading the room / nation
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make such an effort to attract bamkers?
To pick fruit and veg in our fields perhaps…
 
Ziggy said:
Tax Research UK Richard Murphy’s take on it.

Kwarteng's economic strategy becomes clearer. Growth is going to depend on the City of London and its ability to fleece the world of value on behalf of a selected few, at cost to people and planet. This is going to end in tears....
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‘Growth‘ is just a word bandied around. It is a theoretical economic trope.
We can borrow for fun - and are doing with a debt to GDP ratio of 100%, almost 3 trillion in debt. That’s quite a lot btw.

I read that no government in the last 50 years has grown the economy.
This one has absolutely trashed growth and did so pre covid btw.
 
ThatFragranceGuy said:
Whilst their pay is obscene, you can kind of see their point that it doesn't stop them paying bankers large amounts it just means they have to pay them large fixed salaries which increases costs, which will make us less financially attractive to base bankers in. Very poor timing of any such change however with distinct lack of reading the room / nation
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Ye the banking industry has really been on its **** with the current red tape in place
 
So… if they are currently paying big wages because they can’t pay more than double salary in bonus does that mean now bankers will get big salaries AND bonuses?
 
1finny said:
Why do we want to

make such an effort to attract bamkers?
To pick fruit and veg in our fields perhaps…
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because banks making millions in profit generates massive amounts of tax, both corporation tax paid end of year and paye tax on both salaries and bonus payments. Those bonuses and salaries are spent in our economy. They're not mutually exclusive with working class salaries - we can want better pay for the working class at the same time as trying to attract more money into our financial sector.
 
Jonny Ingbar said:
That's not the issue, it's an EU measure to prevent excessive risk taking in pursuit of bigger bonus payments.

We've been down this road before and we all had to endure years of austerity.

It's a crazy move and one the Bank of England is firmly against.
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Remember liz truss in the hustings saying we are going to have a big bonfire 🔥 of eu regulation….here’s the first (!)
It reminded me of Warden Norton in the Shawshank stating to Tim robbins; (after robbins realised the warden was fiddling thousands) if you don’t carry on doing them accounts of mine as you normally do, well…. we’ll have ourselves a great big bonfire 🔥 with all those library books and dance around it like banshees…..
 
Paying big bonuses to bankers in a cost of living crisis is a vote loser for the Tories so until Labour get in I would encourage it.

There are lots of Red Wall voters who will like it when Starmer campaigns and promises a new cap on obscene bonuses and there is nothing the Tories will be able to do to spin it that these bonuses are worthwhile.
 
ThatFragranceGuy said:
because banks making millions in profit generates massive amounts of tax, both corporation tax paid end of year and paye tax on both salaries and bonus payments. Those bonuses and salaries are spent in our economy. They're not mutually exclusive with working class salaries - we can want better pay for the working class at the same time as trying to attract more money into our financial sector.
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You have bought the brief hook line and sinker.
Trickle down economics is a sham- no evidence exists for it anywhere - ask Peston and other economic experts.

Remember what the bankers were responsible for in 2007.
Iceland put their’s behind bars. We want to pay them more.

The guy who paid 25k for the Truss campaign was asked what Brexit benefit he wanted - he said a cap on bankers bonuses.
That’s what it is about.
 
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