Bankers Bonuses

[rov1200]

http://news.bbc.co.uk/1/hi/uk_politics/8202738 .stm

Besides the platitudes what is Labour doing to prevent this?

[sag]

Nothing...........as always!

[rov1200]

I see that Darling has taken notice of this question today Sunday and is now to take action

http://news.bbc.co.uk/1/hi/uk_politics/8203793 .stm

Why does he have to be shamed to do so?

[jake-the-peg]

They instructed the FSA to bring in regulations in the new year.

Banks that received Government money had to accept restrictions on Bonuses at the time.

I must say though that if someone had told me a couple of years back that Tory voters would be screaming for a Labour government to interfere in the running of businesses and telling them what they could or could not pay their staff I'd have thought they were mad!

Shall we interefere in other city firms too? Insurers? Lawyers?

We could set out a set of laws saying what anybody would be allowed to earn!

That'd be real Socialism!

[youngmafbog]

And lets not forget footballers Jake !

[rov1200]

Who should we blame for the bonuses, the people that receive them or the banks that hand them out? Lets assume they are richly deserved and if they were taken away our most skilled workers would move abroad.

There are talks that the bonus should have a new rate of taxation applied to it, but these high earners would have been taxed at 50% on the bonus.

Better therefore to target the bank itself. Why not introduce a levy on banks equal to the bonus paid. As �12bn was paid out in bonuses last year then the same amount could be collected from the company into government coffers?

[rov1200]

Jake its well known the FSA has no teeth to change the bonus structure.

http://www.capita-ld.co.uk/resource-area/Emplo yment-law-news/FSA+warning+to+top+UK+bankers+l acks+the+teeth+to+curb+bonuses+says+TUC.htm

Even the Tories would abolish the FSA so here you have opposition from both sides.

Maybe the best solution is to revert important bank decisions to the Bank of England.