Interfering with banks.
Discussion
Can't we simply have a system where the government doesn't get involved in the banking during the good or bad times?
"European regulators are set to tether banker bonuses to the level of basic salaries in a move that could deal the most severe blow yet to the culture of multi-million pound pay-outs.
Under the terms of proposals, expected to be published on Friday, investment banks may be forced to limit bonuses to a set multiple of bankers' salaries that would be agreed with financial watchdogs.
The Committee of European Bank Supervisors (CEBS) wants to see an end to bonuses that can be up to 50 times bigger than a banker's salary. Instead, the group, which is based in London and comprises members of the 27 European Union member states, wants banks to have to agree a maximum ratio of fixed-income to deferred pay with their national regulators.
Jon Terry, head of reward at PriceWaterhouseCoopers, said: "While CEBS is unlikely to set a specific ratio, we expect them to propose a framework from which banks will work with national regulators on agreed bonus multiples, and then to have to justify them in the context of their risk profiles. This is going to be a radical change for many institutions."
http://www.telegraph.co.uk/finance/newsbysector/ba...
"European regulators are set to tether banker bonuses to the level of basic salaries in a move that could deal the most severe blow yet to the culture of multi-million pound pay-outs.
Under the terms of proposals, expected to be published on Friday, investment banks may be forced to limit bonuses to a set multiple of bankers' salaries that would be agreed with financial watchdogs.
The Committee of European Bank Supervisors (CEBS) wants to see an end to bonuses that can be up to 50 times bigger than a banker's salary. Instead, the group, which is based in London and comprises members of the 27 European Union member states, wants banks to have to agree a maximum ratio of fixed-income to deferred pay with their national regulators.
Jon Terry, head of reward at PriceWaterhouseCoopers, said: "While CEBS is unlikely to set a specific ratio, we expect them to propose a framework from which banks will work with national regulators on agreed bonus multiples, and then to have to justify them in the context of their risk profiles. This is going to be a radical change for many institutions."
http://www.telegraph.co.uk/finance/newsbysector/ba...
Who would keep any money in Banks without things like FSCS?
Put simply, banks as we know them cant exist without constant government assistance and guarantees.
I remember reading Zopa, the online lend/borrow service actually has a better delinquency rate on its loans than most banks! And i bet their overheads are a lot lower too.
Put simply, banks as we know them cant exist without constant government assistance and guarantees.
I remember reading Zopa, the online lend/borrow service actually has a better delinquency rate on its loans than most banks! And i bet their overheads are a lot lower too.
limit a bonus that is not guaranteed will only make the salaries which are guaranteed go through the roof...
Those on a salary if £100k and a bonus of £500k now being limited will be going on to salary of £400k and bonus of £100k or it will just create a team of contractor traders.
Even worse would be that it simply creates a load of funding houses that give what they want and work for the banks.
Those on a salary if £100k and a bonus of £500k now being limited will be going on to salary of £400k and bonus of £100k or it will just create a team of contractor traders.
Even worse would be that it simply creates a load of funding houses that give what they want and work for the banks.
Fittster said:
Can't we simply have a system where the government doesn't get involved in the banking during the good or bad times?
Only when the banks stop owning the governments.Most governments borrow money from banks, prostrating themselves in a compound interest trap. Governments should print their own money, then their debt would be zero and inflation would imit their excesses.
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