This was front page news in the UK last week. Sir Fred Goodwin the ex-CEO of RBS refusing to hand back any of the 693k a year pension he took when he left RBS with a 24 billion loss for Q4 2008.
The politicians who signed it off have now backflipped and asked him to give it back. Several prominent articles in the financial press agreed that he should give it back. He refused, quite rightly stating that they had signed it off 6 months ago so they are contractually obliged. So now we have these backflipping political scum trying to use the press to guilt trip him into giving it back.
Yes, it was a great deal for him, 50 something years old, effectively never having to work again. But I've got to say, there's not much more we know now, that we didn't know back then. Some stupid dumbarse politican was happy enough to agree it 6 months ago. And that is precisely why we find ourselves in this situation in the first place. Dumbarse politicans who had no clue what they were doing when they are meant to be providing the regulatory framework to govern the financial markets which provide the backbone to the real eocnomy.
Here's Fred's letter refusing to budge. And it seems the majority agree with him in this survey, a survey which includes RBS employees!!
I say that Lord Myners who gave his approval for Fred's package in the first place should resign. Instead these twats are threatening to introduce special laws to revoke his deal which is solid under existing contract law!! What implication that would have for business and economic freedom, I dont know.... but I reckon it would be disatrous. What a political risk that poses to the British economy I wonder.... But then again you have the USA across the pond which is, in my opinion, tipping the scale away from its roots of free market capitalism and slowly on its way to a country of junky State owned basically defunct semi government institutions!!
What a complete mess...
Monday 2 March 2009
Tuesday 17 February 2009
Stick Those TARP Funds Where The Sun Don't Shine
Now, I hate to keep putting up links but this story is a cracker.
Am I the only one who witnessed the political theatre that was the 'grilling' of the 8 Wall Street CEOs called before the US House Financial Services Committee last week, to think that the whole thing simply revealed what a bunch of idiots many US lawmakers actually are ? Most did not understand the issues, had no grasp of the financial markets or how business works, and just saw this as a wonderful opportunity to jump on the bank-bashing bankwagon in an effort to pander to an electorate which is, by and large, as ignorant as they are.
CEOs from Bank of America, Bank of New York, Citi, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and Wells Fargo were hauled up for a public flogging.....
And the story goes on - check out this clip of one grilling:
Just goes to show how inept our so-called leading politicians are....
Am I the only one who witnessed the political theatre that was the 'grilling' of the 8 Wall Street CEOs called before the US House Financial Services Committee last week, to think that the whole thing simply revealed what a bunch of idiots many US lawmakers actually are ? Most did not understand the issues, had no grasp of the financial markets or how business works, and just saw this as a wonderful opportunity to jump on the bank-bashing bankwagon in an effort to pander to an electorate which is, by and large, as ignorant as they are.
CEOs from Bank of America, Bank of New York, Citi, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and Wells Fargo were hauled up for a public flogging.....
And the story goes on - check out this clip of one grilling:
Just goes to show how inept our so-called leading politicians are....
Tuesday 10 February 2009
Monday 9 February 2009
The Banker Bonus Dilemma
Hasn't there been some press lately regarding the bonus payouts at Banks over the last few months!
I have to say, I can understand why the public is concerned at seeing institutions that received taxpayer support to survive, then go on to spend millions on "bonus" payments to their employees. However, we need to look at this situation in context.
Firstly, the disclaimer. Yes, I work at an Investment Bank which was a recipient of some TARP money. BUT, since I am a consultant, I am not a participant in the whole Bonus game, so I have no personal interest in seeing bonuses paid or not paid.
So, back to the bonus dilemma. The politicians have really dived headfirst into this. Barack has spoken about it and Gordon Brown is talking about this as well. Ever since these goverments took equity stakes in these institutions they have used it as a political tool to gain public support.
The REAL issue though is that the salary structure is weighted so much towards incentive payments, or "bonuses", that without them bankers are on fairly average salaries. I know, I wouldn't be hanging around, busting my arse off for 60 hours a week if I didnt get a bonus at the end of the year. So just at a time when we need good people to work hard and turn things around, we are left with a disenchanted workforce who are putting in less. Bit of a problem, hey?
So, fine you say, cut bonuses and bump up base salaries. But, isnt that a zero sum gain?
If you have high bases and a smaller bonus element, then you'll have a bunch of freeloaders floating around. Might even end up a bit like a government department with bureaucrats making work for themselves and achieving nothing...?
And what about the contractual bonuses that are written into the contracts of these high flying bankers? That is - the ones who actually generate money for the firm? There is no dodging these bonus payments. They're contractually bound and if not paid, a solid source of income generation for the firm would disappear.
After all this political crap, no wonder firms like GS want to pay the damned TARP money back. There are solid institutions out there, that took the money at the suggestion of the government, to give the policy some support when it was launched. Now they find themselves with a major shareholder that will change their mind on a whim if it means an extra vote or two...
So, tough situation hey, but geez Im sick of hearing these fat cat politicains talk about bonuses... How many stories are there of self serving pension arrangements and pay raises within politics? Funny how we havent heard much about that lately
I have to say, I can understand why the public is concerned at seeing institutions that received taxpayer support to survive, then go on to spend millions on "bonus" payments to their employees. However, we need to look at this situation in context.
Firstly, the disclaimer. Yes, I work at an Investment Bank which was a recipient of some TARP money. BUT, since I am a consultant, I am not a participant in the whole Bonus game, so I have no personal interest in seeing bonuses paid or not paid.
So, back to the bonus dilemma. The politicians have really dived headfirst into this. Barack has spoken about it and Gordon Brown is talking about this as well. Ever since these goverments took equity stakes in these institutions they have used it as a political tool to gain public support.
The REAL issue though is that the salary structure is weighted so much towards incentive payments, or "bonuses", that without them bankers are on fairly average salaries. I know, I wouldn't be hanging around, busting my arse off for 60 hours a week if I didnt get a bonus at the end of the year. So just at a time when we need good people to work hard and turn things around, we are left with a disenchanted workforce who are putting in less. Bit of a problem, hey?
So, fine you say, cut bonuses and bump up base salaries. But, isnt that a zero sum gain?
If you have high bases and a smaller bonus element, then you'll have a bunch of freeloaders floating around. Might even end up a bit like a government department with bureaucrats making work for themselves and achieving nothing...?
And what about the contractual bonuses that are written into the contracts of these high flying bankers? That is - the ones who actually generate money for the firm? There is no dodging these bonus payments. They're contractually bound and if not paid, a solid source of income generation for the firm would disappear.
After all this political crap, no wonder firms like GS want to pay the damned TARP money back. There are solid institutions out there, that took the money at the suggestion of the government, to give the policy some support when it was launched. Now they find themselves with a major shareholder that will change their mind on a whim if it means an extra vote or two...
So, tough situation hey, but geez Im sick of hearing these fat cat politicains talk about bonuses... How many stories are there of self serving pension arrangements and pay raises within politics? Funny how we havent heard much about that lately
Monday 2 February 2009
Snowed in
Well, the biggest snowstorm I've seen in london has hit and theres about 6 inches of snow everywhere. Cant get to work and neither can anyone it seems... theres no buses, hardly and trains and tubes, but the snow really makes the place look a whole lot prettier!
Time to go and make a snowman in the park!!! Here is what Clapham Common looks like this morning!!!
Time to go and make a snowman in the park!!! Here is what Clapham Common looks like this morning!!!
Tuesday 27 January 2009
Random stuff
Just got home from a mid-week basketball game. We played awful and I particularly played awful. Ended up fouling out with 20 seconds left but was not really able to play defence the whole last quarter with 4 fouls against my name....
anyway, we're not doing too badly. sitting in 2nd place in the league at the moment. But we're going to have to lift our game if we want to stay there. Check out the standings, our team is ANZSAC.
anyway, we're not doing too badly. sitting in 2nd place in the league at the moment. But we're going to have to lift our game if we want to stay there. Check out the standings, our team is ANZSAC.
Saturday 24 January 2009
Rakeback and online poker
I made an interesting discovery this week.
I am a fairly regular player of poker online and after doing some investigation for a potential new site to use, I uncovered the world of Rakeback.
Simply - this is where you sign up to a poker site through an affiliate (similar to a broker i guess), and when that affiliate receives a % of your rake as commission, they pass some back to you as the player.
Well, thats interesting. just for breaking even in the poker room, I could be getting paid money back.
The stupid thing, is that as an existing customer, I dont qualify for this rakeback deal!! So what incentive is there for me to stay? I could move to another poker room and pay less commission effectively. There absolutely no incentive for existing players... I think this is something poker rooms should look into further as they are just creating a massive circluar movement of market share. I cant see how there's a net benefit to anyone.
Anyway, I have written to Betfair, and am hoping to get my account moved onto a rakeback account. If they refuse I'll just sign up elsewhere...
I am a fairly regular player of poker online and after doing some investigation for a potential new site to use, I uncovered the world of Rakeback.
Simply - this is where you sign up to a poker site through an affiliate (similar to a broker i guess), and when that affiliate receives a % of your rake as commission, they pass some back to you as the player.
Well, thats interesting. just for breaking even in the poker room, I could be getting paid money back.
The stupid thing, is that as an existing customer, I dont qualify for this rakeback deal!! So what incentive is there for me to stay? I could move to another poker room and pay less commission effectively. There absolutely no incentive for existing players... I think this is something poker rooms should look into further as they are just creating a massive circluar movement of market share. I cant see how there's a net benefit to anyone.
Anyway, I have written to Betfair, and am hoping to get my account moved onto a rakeback account. If they refuse I'll just sign up elsewhere...
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