do you think they will quit?

Repta said:
So the investment part of the bank made 5 billion profit? Yet people think they shouldnt get a bonus? If thats the case whats the point on the investment arm trying at all?
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Don't be ridiculous, you don't pay bonuses at 30% of profit made, that utter insanity, especially when your profit was made of the back of a 45Billion loan. Start repaying the bloody loan.

All scare mongering of 'ooooh they'll go elsewhere' let them. They can't redeploy 20,000 staff, 20,000 people will NOT quit. If the board offer their resignations, then accept and terminate contracts, no golden parachutes. Then see if the 20,000 all decide to walk also. I doubt it'll happen, and even if it does, at the profit margins they made, they won't repay the loan for 10 or more years.
 
scorza said:
I also do not want to see the government in a position where it has to bail out another bank - that means that significant change in the banking industry is necessary. Remember that if the government had not bailed out the worst banks, then even the banks that avoided a bail out such as Barclays and HSBC would have gone under as they are owed money by RBS and HBOS. The profits being made by banks now are at least partly thanks to the benign market conditions created by world governments.

Therefore no, I don't want to see profitability at RBS maximised over the next few years - that would simply be repeating the mistakes of short-termism. I want to maximise economic stability.
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The only way to create economic stability is by creating a level playing field which all banks have to agree on. If you cripple one bank's ability to pay the bonuses they expect/deserve then you are doing exactly the opposite. It's an almost guaranteed way of making them require another bail out.
 
Hikari Kisugi said:
Don't be ridiculous, you don't pay bonuses at 30% of profit made, that utter insanity, especially when your profit was made of the back of a 45Billion loan. Start repaying the bloody loan.

All scare mongering of 'ooooh they'll go elsewhere' let them. They can't redeploy 20,000 staff, 20,000 people will NOT quit. If the board offer their resignations, then accept and terminate contracts, no golden parachutes. Then see if the 20,000 all decide to walk also. I doubt it'll happen, and even if it does, at the profit margins they made, they won't repay the loan for 10 or more years.
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Loan /= investment

Nobody has said they will lose 20,000 staff. They WILL lose staff, and it'll almost certainly be the ones making the most money because other banks will be straight in to snatch them away. All it will take is for them to offer the bonuses that RBS won't be allowed to.
 
I hope they do resign and end up without such a good job in the future, greedy buggers!

I work for a part owned governement bank (HBOS-now Lloyds) and am going to be made redundant due to the decisions and risks taken by those who were getting paid millions. The guy in charge at HBOS last year lost his job when it went **** up... he's now MD of Boots :rolleyes:

The guy who preceeded him, and probably more responsible, was 2nd in command at the FSA (and knighted)! It's a crazy world I tells ya :confused:
 
[FnG]magnolia;15453172 said:
Even by GD standards, this is one of the most stupid, ill-informed comments I think I've ever read.
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Terrorism!!!!! Those bankers will soon be getting their bomb vests ready!
 
growse said:
Presumably you're aware that you're waving a big flag that says "I don't understand what's going on, but I don't like it! Rah! Terrorists!"? You'll struggle to find people to take you seriously.
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It's called blackmail both do it both Try to get away with it.
 
It seems that we will never learn, or that the banks have no intention of learning. We need to learn from our mistakes which was the banks investing too much, in too risky ventures to make the moeny so they could earn the outrageous bonuses. Pay them more in the first place but cap/ban the bonuses or we will be back in the same place again in 10-20 years time.
 
cymatty said:
Trouble is, if you pay a flat wage with no bonus where is the incentive to go the extra mile.
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Potential for a pay increase/promotion.

I dont recieve a massive bonus but I work hard knowing that it will get me a payrise the next year and (hopefully) getting me the next step up on the ladder.

If they dont like it find a new career because I will bet that at the moment even their basic pay will far outweigh most other professions out there, I may be wrong on that account though.
 
[FnG]magnolia;15453554 said:
Please, just stop. You're embarrassing yourself.
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Why?

If some bank peole say "if you do this I will Leave" that's blackmail
same as anyone trying it on. Does not matter who they are it's blackmail.


Oh and by the way if I want your personal opinion I will ask for it ;)
 
cymatty said:
Which may work if every institution did this.

However if one company does this you can guarantee that people will jump ship and all that will be left are the bottom performers.
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Oh of course, I dont disagree with that. Any changes would have to be implemented across the financial sector as a whole or as you say people would jump ship to wherever was still paying the bonuses
 
No1newts said:
Oh of course, I dont disagree with that. Any changes would have to be implemented across the financial sector as a whole or as you say people would jump ship to wherever was still paying the bonuses
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Which is the main problem. The whole issue is the government + general taxpayers trying to force RBS to do something which no other bank does or will do any time soon.
 
cheets64 said:
Last time I looked it was a free market, why are bankers so special?
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Oh what, so everytime someone does well and asks for their bonus, you fire them just like that?

Seems like a pretty inefficient way to run a business.

And if it is a true free market, then they are entitled to their bonuses.
 
No1newts said:
Oh of course, I dont disagree with that. Any changes would have to be implemented across the financial sector as a whole or as you say people would jump ship to wherever was still paying the bonuses
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Unless it was worldwide, all we would do is cripple our financial industry...

You have also forgotten that the problem with pay increases is that they don't encourage year on year hard work, and the problem with promotion is that the company ends up top heavy, and that leads to massive downsizing as happened in the early to mid 90's.

Reasonable salary + bonus works to mitigate both these concerns.
 
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