The City takes a kicking (from the G20 leaders)
Discussion
Tentatively good news from the G20 conference. It looks like the finance industry will be kicked into line with some aggresive regulation of fat cat plc.
Bad news for you bonus eaters, but potentially good news for normal working people. You had your chance to self-regulate, to show some remorse and appologise, but you didn't.
And now we are putting you on the naughty step.
"Our business now, is north"
Bad news for you bonus eaters, but potentially good news for normal working people. You had your chance to self-regulate, to show some remorse and appologise, but you didn't.
And now we are putting you on the naughty step.
G20 said:
City firms will face a new super-regulator. The Basel-based Financial Stability Forum, which was set up a decade ago as an informal network of central banks, finance ministries and market regulators, will be renamed the Financial Stability Board, and given sweeping new powers to oversee banks and international markets. The G20 promised to create a "stronger, more globally consistent, supervisory and regulatory framework for the future financial sector, which will support sustainable global growth and serve the needs of business and citizens."
The FSF immediately made its intentions clear by issuing a series of edicts:
• Bankers' pay and bonuses must reflect the risks they are taking - so huge cash bonuses for high-risk bets are out.
• Hedge funds must disclose their leverage levels - effectively how indebted they are - so regulators can assess the risks they are taking.
• Accounting rules will be radically rewritten to end the practice of "mark to market" valuations, which exacerbated the crash by forcing banks to keep slashing the value of their toxic assets.
• Credit derivatives, the complex bets that sent the Lehman Brothers collapse ricocheting through the world's markets, can no longer be sold "over the counter" between one financial institution and another - instead, there will have to be a central clearing house, so the trades can be carefully controlled.
• Credit ratings agencies, which gave many of the toxic assets at the heart of the crisis AAA ratings, will be more closely supervised.
• The FSF will collaborate with the International Monetary Fund to spot looming economic and financial crises at an early stage.
The G20 also announced a dramatic crackdown on tax havens.
And well done all those who expressed outrage over the banks' behaviour. The FSF immediately made its intentions clear by issuing a series of edicts:
• Bankers' pay and bonuses must reflect the risks they are taking - so huge cash bonuses for high-risk bets are out.
• Hedge funds must disclose their leverage levels - effectively how indebted they are - so regulators can assess the risks they are taking.
• Accounting rules will be radically rewritten to end the practice of "mark to market" valuations, which exacerbated the crash by forcing banks to keep slashing the value of their toxic assets.
• Credit derivatives, the complex bets that sent the Lehman Brothers collapse ricocheting through the world's markets, can no longer be sold "over the counter" between one financial institution and another - instead, there will have to be a central clearing house, so the trades can be carefully controlled.
• Credit ratings agencies, which gave many of the toxic assets at the heart of the crisis AAA ratings, will be more closely supervised.
• The FSF will collaborate with the International Monetary Fund to spot looming economic and financial crises at an early stage.
The G20 also announced a dramatic crackdown on tax havens.
"Our business now, is north"
ked and they are the ones who are supposed to regulate the city... should it start there rather than with the city folk???BOR said:
Tentatively good news from the G20 conference. It looks like the finance industry will be kicked into line with some aggresive regulation of fat cat plc.
Governments set the previous regulations though... do you not think they have some responsibility for the "crisis"...?How is the bonus thing going to be enforceable? Surely salary will just increase with a paltry bonus available?
G20 said:
City firms will face a new super-regulator. The Basel-based Financial Stability Forum, which was set up a decade ago as an informal network of central banks, finance ministries and market regulators, will be renamed the Financial Stability Board, and given sweeping new powers to oversee banks and international markets. The G20 promised to create a "stronger, more globally consistent, supervisory and regulatory framework for the future financial sector, which will support sustainable global growth and serve the needs of business and citizens."
hot airG20 said:
• Bankers' pay and bonuses must reflect the risks they are taking - so huge cash bonuses for high-risk bets are out.
This is clearly a good thing in principle.G20 said:
• Hedge funds must disclose their leverage levels - effectively how indebted they are - so regulators can assess the risks they are taking.
the good ones already do.G20 said:
• Accounting rules will be radically rewritten to end the practice of "mark to market" valuations, which exacerbated the crash by forcing banks to keep slashing the value of their toxic assets.
You clearly don't know what this means. This is something the banks wanted themselves.G20 said:
• Credit derivatives, the complex bets that sent the Lehman Brothers collapse ricocheting through the world's markets, can no longer be sold "over the counter" between one financial institution and another - instead, there will have to be a central clearing house, so the trades can be carefully controlled.
In theory, a good thing. It would be good to be able to have some idea of the globally netted position, but I am highly sceptcial as to whether this is remotely possible.G20 said:
• Credit ratings agencies, which gave many of the toxic assets at the heart of the crisis AAA ratings, will be more closely supervised.
They have always been worse than useless and should be ignored by the market now, which would mean they went bust.G20 said:
• The FSF will collaborate with the International Monetary Fund to spot looming economic and financial crises at an early stage.
more hot air.G20 said:
The G20 also announced a dramatic crackdown on tax havens
no details given. Unlikely to amount to much.Podie said:
BOR said:
Tentatively good news from the G20 conference. It looks like the finance industry will be kicked into line with some aggresive regulation of fat cat plc.
Governments set the previous regulations though... do you not think they have some responsibility for the "crisis"...?How is the bonus thing going to be enforceable? Surely salary will just increase with a paltry bonus available?
People got rid of what they thought was the issue and now created a worse one as none of the good staff will work for RBS without huge pay hikes
BOR said:
Tentatively good news from the G20 conference. It looks like the finance industry will be kicked into line with some aggresive regulation of fat cat plc.
Bad news for you bonus eaters, but potentially good news for normal working people. You had your chance to self-regulate, to show some remorse and appologise, but you didn't.
And now we are putting you on the naughty step.
"Our business now, is north"
BOR your ignorance is apparently limitless.Bad news for you bonus eaters, but potentially good news for normal working people. You had your chance to self-regulate, to show some remorse and appologise, but you didn't.
And now we are putting you on the naughty step.
G20 said:
City firms will face a new super-regulator. The Basel-based Financial Stability Forum, which was set up a decade ago as an informal network of central banks, finance ministries and market regulators, will be renamed the Financial Stability Board, and given sweeping new powers to oversee banks and international markets. The G20 promised to create a "stronger, more globally consistent, supervisory and regulatory framework for the future financial sector, which will support sustainable global growth and serve the needs of business and citizens."
The FSF immediately made its intentions clear by issuing a series of edicts:
• Bankers' pay and bonuses must reflect the risks they are taking - so huge cash bonuses for high-risk bets are out.
• Hedge funds must disclose their leverage levels - effectively how indebted they are - so regulators can assess the risks they are taking.
• Accounting rules will be radically rewritten to end the practice of "mark to market" valuations, which exacerbated the crash by forcing banks to keep slashing the value of their toxic assets.
• Credit derivatives, the complex bets that sent the Lehman Brothers collapse ricocheting through the world's markets, can no longer be sold "over the counter" between one financial institution and another - instead, there will have to be a central clearing house, so the trades can be carefully controlled.
• Credit ratings agencies, which gave many of the toxic assets at the heart of the crisis AAA ratings, will be more closely supervised.
• The FSF will collaborate with the International Monetary Fund to spot looming economic and financial crises at an early stage.
The G20 also announced a dramatic crackdown on tax havens.
And well done all those who expressed outrage over the banks' behaviour. The FSF immediately made its intentions clear by issuing a series of edicts:
• Bankers' pay and bonuses must reflect the risks they are taking - so huge cash bonuses for high-risk bets are out.
• Hedge funds must disclose their leverage levels - effectively how indebted they are - so regulators can assess the risks they are taking.
• Accounting rules will be radically rewritten to end the practice of "mark to market" valuations, which exacerbated the crash by forcing banks to keep slashing the value of their toxic assets.
• Credit derivatives, the complex bets that sent the Lehman Brothers collapse ricocheting through the world's markets, can no longer be sold "over the counter" between one financial institution and another - instead, there will have to be a central clearing house, so the trades can be carefully controlled.
• Credit ratings agencies, which gave many of the toxic assets at the heart of the crisis AAA ratings, will be more closely supervised.
• The FSF will collaborate with the International Monetary Fund to spot looming economic and financial crises at an early stage.
The G20 also announced a dramatic crackdown on tax havens.
"Our business now, is north"
Pick up a decent paper
Yet more poorly thought out b
Cookie172 said:
WTH is that bonus one all about? Are they now saying that pulling high risk bets yields you a low bonus?
I'd have thought if, as an investor, you made low-risk investments and got a low return on your money you would get a lower "bonues" than someone making higher risk investments with a higher return!What has been WRONG in the city is the lack of information about the level of risk.
It has been like selling someone a lottery ticket and telling them there's a one in ten chance of winning!
Regulation that prevents the fraudulent presentation of investments as being something they are not is a good idea. Then investors can make their own decision as to what to get into and what to avoid. This transparency needs to permeate the industry right the way down to the individual investor taking out a pension or similar.
As to pay? Tightly linking it to profit usually gets the best results. Rewarding failure on the other hand is bonkers. No one should be paid a bonus for losing money...whether in a state owned business or one in private hands.
Dupont666 said:
Podie said:
BOR said:
Tentatively good news from the G20 conference. It looks like the finance industry will be kicked into line with some aggresive regulation of fat cat plc.
Governments set the previous regulations though... do you not think they have some responsibility for the "crisis"...?How is the bonus thing going to be enforceable? Surely salary will just increase with a paltry bonus available?
People got rid of what they thought was the issue and now created a worse one as none of the good staff will work for RBS without huge pay hikes
Daily Mash on the G20 said:
Meanwhile, as the summit finalises plans for a global system of banking regulation, banks across the world will be finalising their plans for how to get round it.
One senior banker said: "Despite everything that's happened it is important to remember that they're just politicians and we're still much, much cleverer than they are."
One senior banker said: "Despite everything that's happened it is important to remember that they're just politicians and we're still much, much cleverer than they are."
tax havens???? i doubt something like that exists...
The correct description would be low tax economies. eg. if UK tax rate is 35.7% and french rate is 5% then how is operating out of france deemed as stashing money in a tax haven?
All crap...all offshore banking countries that are on their 'Grey' list operate low taxation for foriegner owned enterprises for international trade. I doubt there is a country that actively facilitates 'tax haven' behaviour. Atleast the reputable ones dont IMO!
The correct description would be low tax economies. eg. if UK tax rate is 35.7% and french rate is 5% then how is operating out of france deemed as stashing money in a tax haven?
All crap...all offshore banking countries that are on their 'Grey' list operate low taxation for foriegner owned enterprises for international trade. I doubt there is a country that actively facilitates 'tax haven' behaviour. Atleast the reputable ones dont IMO!
Don said:
Cookie172 said:
WTH is that bonus one all about? Are they now saying that pulling high risk bets yields you a low bonus?
I'd have thought if, as an investor, you made low-risk investments and got a low return on your money you would get a lower "bonues" than someone making higher risk investments with a higher return!Cookie/Mechsympathy,
I assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
I assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
Bing o said:
Daily Mash on the G20 said:
Meanwhile, as the summit finalises plans for a global system of banking regulation, banks across the world will be finalising their plans for how to get round it.
One senior banker said: "Despite everything that's happened it is important to remember that they're just politicians and we're still much, much cleverer than they are."
One senior banker said: "Despite everything that's happened it is important to remember that they're just politicians and we're still much, much cleverer than they are."
Long term, you'll win, but this battles falls to us.
BOR said:
Cookie/Mechsympathy,
I assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
BORI assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
please tell us what your selfless contribution to society is.
johnfm said:
BOR said:
Cookie/Mechsympathy,
I assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
BORI assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
please tell us what your selfless contribution to society is.
johnfm said:
BOR said:
Cookie/Mechsympathy,
I assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
BORI assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
please tell us what your selfless contribution to society is.
johnfm said:
BOR said:
Cookie/Mechsympathy,
I assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
BORI assume the thinking is that Porky doesn't get an extra bucket of swill if he stakes all the bank's money (which is now, in effect, our money) on some ponzi scheme that his mate in the next sty told him couldn't fail.
No reward for reckless use of cash. No bonuses for building a house of cards.
please tell us what your selfless contribution to society is.
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