Outside the marginals

A commentary on the politics that followed the UK 2010, 2015 & 2017 elections (and THAT referendum)

Archive for the tag “libor”

Executive Pay – Again

The Governor of the Bank of England has weighed in to this never-ending debate:

“The succession of scandals means it is simply untenable now to argue that the problem is one of a few bad apples. The issue is with the barrels in which they are stored.”

“Compensation schemes overvalued the present and heavily discounted the future, encouraging imprudent risk taking and short-termism,” he said.

“Standards may need to be developed to put non-bonus or fixed pay at risk. That could potentially be achieved through payment in instruments other than cash.”
BBC News Website 17 November 2014 : Carney puts bankers’ pay in spotlight after misconduct shockwaves

He goes on to suggest that pay should be in the form of some form of bond which could be clawed back if necessary.

I think there is an easier solution. Read more…

Poppy Populism

The moat of the Tower of London has been filled with a display of 888,246 ceramic poppies – one for each British and Empire death in World War One – which included my Grandfather.

Poppies are transient flowers and fade, and this display was due to fade after Armistice Day. To fund the display and to make some money for service charities it was announced that these poppies would be for sale to the general public.

Living some distance from London it was not possible to see this display, but watching the coverage in the press and on television I was caught by the tribute and bought “my grandfather’s poppy” – to be despatched after the installation ends on 11 November 2014. I imagine that several hundreds of thousands of others have done the same.

Now the Mayor of London and the Prime Minister have intervened in what looks like smoke and mirrors spin and pure populism and “changed the rules”. I expect nothing more from these two.

Read more…

A cynical thought?

We know that Business in general does not favour Scottish Independence.

We know that individuals in banks can manipulate exchange rates.

We know that other individuals can manipulate stock prices.

So is the recent drop in value of the Pound and of share prices for Scottish based companies – a reflection on:

Am I being over-cynical?

Read more…

Bankers bonuses – history repeating itself

So Barclays results are not as good but their bonus pool is up.

The bank’s total bonus pool for 2013 rose by 10% to £2.38bn, from £2.17bn in 2012, with the investment bank’s bonus pool increasing by 13%.

The details come a day after Barclays released its full-year profit figures.

The bank’s statutory pre-tax profits for 2013 rose to £2.9bn, while adjusted pre-tax profits fell to £5.2bn.

Barclays said its profits were hit by restructuring the bank last year, including its withdrawal from certain lines of business, as well as legal costs.

Overall, the bank’s pay-to-income ratio rose to 43.2% from 40% in 2012, well above the bank’s mid-30s target.
BBC News Website 11 February 2014 Barclays to cut up to 12,000 jobs as aims to trim costs

How does this work? Read more…

Resigning as a profession

Ex-Barclays boss Bob Diamond will receive his salary and benefits worth in excess of £2m, but has given up bonuses worth up to £20m after resigning amid the bank Libor scandal.

(ref BBC News Website 10 July 2012)

He was not sacked, he resigned (under a cloud).  When I have resigned (not under a cloud) I was not given a payoff.  Yet he is being given more than I can expect to earn in my entire working life.  Nice work if you can get it – can you make resigning a “profession” (as in oldest)? Read more…


I think I must have a problem with my speech – once again I am left speechless by the latest scandal in our capitalist system.

Barclays fined for attempts to manipulate Libor rates (BBC News Website 27 June 2012).

Barclays Bank PLC Admits Misconduct Related to Submissions for the London Interbank Offered Rate and the Euro Interbank Offered Rate and Agrees to Pay $160 Million Penalty (US Department of Justice Website 27 June 2012)

Barclays Bank PLC Settlement with Authorities (Barclays Website 27 June 2012)

Trader messages reveal sprawl of Libor probe (Financial Times 28 June 2012) {this fingers other banks}

Read more…

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