- Joined
- Aug 26, 2004
- Posts
- 15,616
- Media
- 50
- Likes
- 4,782
- Points
- 433
- Location
- London (Greater London, England)
- Verification
- View
- Sexuality
- 90% Gay, 10% Straight
- Gender
- Male
On reflection the title of this thread is wrong - there's no blackmail in it. Either RBS pay bonuses or the share value will slide. Investors will perceive that there is a problem - that lower bonuses will lead to less talent - and react on this perception whether or not it is correct.
The bonus proposed for Goodwin was around half of last year's, so a big reduction. Let's imagine for a moment that instead of being halved the board had doubled it, to £4m or thereabouts. I think investors would have seen this as an enormous vote of confidence in RBS and their money would have piled in, pushing up the share price. Maybe the government could have taken the chance to sell part of its stake - even a couple of percent sold could raise a billion.
There's also an issue around where the tipping point comes that attracts other banks to the UK. There are banks looking for a home outside Euroland. One big bank moving would give the UK a real boost. We need to be showing them that we love bankers.
Some sort of "moral outrage" whipped up by the media and Miliband is standing in the way of the prosperity of us all. The good of the nation requires that we all hug a banker. We need to make sure they get big bonuses, and titles, and anything else they want. This is not because they deserve it - they don't - but because WE deserve it.
What the bankers do with their winnings doesn't really bother me. The levels are comparable to some sports and media people, and that doesn't really bother me either. In a nation where 80% of our wealth comes from service industry (and around a quarter from finance and the trickle-down) we hurt ourself if we damage the service sector.
The bonus proposed for Goodwin was around half of last year's, so a big reduction. Let's imagine for a moment that instead of being halved the board had doubled it, to £4m or thereabouts. I think investors would have seen this as an enormous vote of confidence in RBS and their money would have piled in, pushing up the share price. Maybe the government could have taken the chance to sell part of its stake - even a couple of percent sold could raise a billion.
There's also an issue around where the tipping point comes that attracts other banks to the UK. There are banks looking for a home outside Euroland. One big bank moving would give the UK a real boost. We need to be showing them that we love bankers.
Some sort of "moral outrage" whipped up by the media and Miliband is standing in the way of the prosperity of us all. The good of the nation requires that we all hug a banker. We need to make sure they get big bonuses, and titles, and anything else they want. This is not because they deserve it - they don't - but because WE deserve it.
What the bankers do with their winnings doesn't really bother me. The levels are comparable to some sports and media people, and that doesn't really bother me either. In a nation where 80% of our wealth comes from service industry (and around a quarter from finance and the trickle-down) we hurt ourself if we damage the service sector.