Treasury orders probe into banks

[4me2]

Treasury orders probe into banks


RBS is among the banks whose plans for bosses' bonuses are in the spotlight


The Treasury is to order an independent investigation into how banks are managed, chancellor Alistair Darling has said.
The review will also examine the pay and bonuses of top executives.
Mr Darling said he "understands people feel angry about excesses of bank bonuses and that directors have a duty to behave responsibly".
The comments come as banks prepare to announce bonuses paid to leading executives amid the financial crisis.
One of the key issues that will be examined in the review is the extent to which financial incentives encourage bankers to take risks.
Bonus controversy
The investigation is being put into place at a time when many of the country's banks are receiving financial help from the taxpayer, BBC business correspondent Joe Lynam said.
RBS, which was bailed out to the tune of £20bn by the government last year, will pay up to £1bn in bonuses to its 177,000 staff, the Sunday Telegraph has reported.
RBS confirmed it was talking to the government about bonuses but refused to comment on any specific numbers - adding that it had contractual obligations to many of its executives but it was trying to do the right thing at the same time.
I just think we've had such a cathartic experience that it can't be business as usual


John McFall,
House of Commons Treasury committee


John McFall, a Labour MP and chairman of the House of Commons treasury committee, welcomed Mr Darling's move.
"There's some people in the financial services industry who consider that they can just keep their heads down for a couple of years, then things will resume as they were. I just think we've had such a cathartic experience that it can't be business as usual.
"And if the government is establishing this and ensuring that boardrooms are looked at, that the role of non-executives is looked at, that corporate governance is looked at very very seriously, then that can help." On Thursday, Prime Minister Gordon Brown insisted there should be "no reward for failure" at banks which have had to be bailed out by the taxpayer. Earlier, Business Secretary Lord Mandelson sent a direct warning to RBS, saying the bank risks alienating ordinary people if it gives its executives "exorbitant" bonuses.



http://news.bbc.co.uk/1/hi/business/7877161.stm




Big fucking late for this now isn't it ? Surely this should have happened when Northern Rock started it troubles? Lets all jump on the Obama band wagon.

[Over Carl]

The cunts in charge are bunch of useless muppets - have you heard how they are saying we won't be taking anything in dividends for all the banks we've propped up - the cash injection is just to keep them afloat until they are ready to stand on their own feet again.

I wonder what will happen then - our taxes will be increased to pay for these cunts fuck ups, but I bet top earners won't bear the brunt as the gov't is scared of them going abroad.

[super mike]

I bet top earners won't bear the brunt as the gov't is scared of them going abroad.

Would you blame them, the whole fucking economic system in this country is a fucking joke and has been for as long as I can remember which is pretty much since the beginning of nu-labia's rein of terror.

[Zippeyrude]

ironic how the govt is reigning in the bonuses, sorry i though this was a capitalist society. idiots.

marx must be laughing his tits off

[CzarJunkie]

marx must be laughing his tits off

I think Marx would be as confused as anyone. The problem the nationalised banks face now is keepng their best staff. While they've ruined the businesses, they are probably the best people to get them out of this mess and make the taxpayer a return. Remember, the game hasn't changed, just the teams.

[Over Carl]

I remember thinking the exact thing when this all kicked off - but the way it's unfolded - I thought we aren't to receive a return? (well anything above and beyond them paying income tax).