Debate over bonuses to bank execs in bailout extends to UK

The English are experiencing the same thing that US citizens went through recently as the government is making waves about denying bonuses to banking executives who’s firms are getting bailout money from the government. It’s a fundamental anger – why pay someone for screwing up a company? People are having shitty times, and they see tax money going to rich folks for doing a crappy job. They have a right to be angry – and maybe screaming about it will help a bit. Good luck, Great Britain.

The government yesterday publicly hardened its position on bank executive bonuses saying it will be “very, very robust” in clamping down on bonuses for 2008 in banks in which it holds shares. It will only allow modest payments for clerks earning around £20,000 a year. It came as David Cameron said he would cap all 2008 bonuses at £2,000 for staff in banks owned or partly owned by the government. He also said the government should be willing to sue any bank executive who insisted their contract entitled them to a large bonus for the year. – From Guardian UK

Not in a million years. Readers may be outraged our so-called leaders didn’t use the “bail-out” money as a bargaining chip – “if you want the cash, no bonuses this year”. I’m outraged too. But having spent lots of time around politicians and their officials, I know the vast majority aren’t particularly clever. Many also hope that one day, in their dotage, the call will come and they too will get to sit in a City boardroom, pretending to understand what’s going on, hawking a few “high-level contacts” in return for a nice fat wad. If Tony Blair can do it, why can’t they? As long as the money men are kept onside. Having said all that, bonuses just aren’t the point. During this bonus fixation, we’re neglecting far more significant questions. How do we get out of this mess? Will the wild, unprecedented policies now being implemented do more harm than good? That’s what truly matters. – From Telegraph UK

Pressure on Britain’s beleaguered banks to abandon bonuses for senior executives intensified yesterday as a senior minister declared that the managers at the top of the troubled institutions “shouldn’t get a penny”. Tony McNulty, the Employment Minister, issued the starkest warning yet to bank bosses to curb bonuses this year, as the major political parties vied to attack payouts for employees whose banks have been bailed out by the taxpayer. Mr McNulty said he would not deny bonuses to rank-and-file banking staff, but warned that “anyone having to do with the endorsement of the business model, the future business strategy, shouldn’t get a penny. And I think that’s absolutely clear”. – From the Independent