Bankers and financiers who take irresponsible risks should be "punished" for their actions, Gordon Brown said today. Following yesterday's massive Government bailout for the banks, the Prime Minister spoke of his anger at the way some in the City had behaved. "I am angry at irresponsible behaviour," he told GMTV. "Our economy is built around people who work hard, who show effort, who take responsible decisions, and whether there is excessive and irresponsible risk-taking, that has got to be punished."
Bankers and financiers who take irresponsible risks should be "punished" for their actions, Gordon Brown said today.
Following yesterday's massive Government bailout for the banks, the Prime Minister spoke of his anger at the way some in the City had behaved.
"I am angry at irresponsible behaviour," he told GMTV. "Our economy is built around people who work hard, who show effort, who take responsible decisions, and whether there is excessive and irresponsible risk-taking, that has got to be punished."
In other departments average pay was still £1m a year. Even so, London bankers might consider themselves poorly paid. Those doing the same job in Asia, said the survey, were averaging £1.4m. "If one bank holds down pay, then staff will leave and go to one that doesn't," said one fund manager. "And if London becomes badly paid then there will be an exodus to Mumbai, Shanghai or Dubai."
"If one bank holds down pay, then staff will leave and go to one that doesn't," said one fund manager. "And if London becomes badly paid then there will be an exodus to Mumbai, Shanghai or Dubai."
Bonuses May Fall in London LONDON -- Bonus payout by banks in London's financial district will be about 60% lower this year, marking the emergence of a culture where bonuses will be smaller and based more on long-term results, the Centre for Economics and Business Research said. "The million-pound-plus bonuses are going to be few and far between," Richard Snook, a senior economist at the think tank, said. The research center said it expects the total bonus payout in the City, as London's financial district is known, to slump to £3.6 billion ($6.22 billion) this year from £8.5 billion last year. Next year, the researchers said, it will drop to £2.8 billion.
LONDON -- Bonus payout by banks in London's financial district will be about 60% lower this year, marking the emergence of a culture where bonuses will be smaller and based more on long-term results, the Centre for Economics and Business Research said.
"The million-pound-plus bonuses are going to be few and far between," Richard Snook, a senior economist at the think tank, said.
The research center said it expects the total bonus payout in the City, as London's financial district is known, to slump to £3.6 billion ($6.22 billion) this year from £8.5 billion last year. Next year, the researchers said, it will drop to £2.8 billion.
Good people, for example in the pro video/broadcast/film world, go to work for Sony and Panasonic. But they don't make what the high flyers do in the industry...but eventually, they beat the rest of the industry and eventually the wages within the industry go down.
Now, we need someone to mark the bet, someone to bet against, a few people to buy insurance that either better will pay if we lose, a few side bets, and a few insurance policies on those, tranch a few of those together and sure, I'll buy a couple shares of those and a couple of shorts on them just to cover myself. but, I think the gory and glory days are gone for a long cycle...meaning, we won't see another criminal usurpation of the economy by nihilistic termites for 16 years instead of 8 years.
HT and apologies to whoever (was it rd?) who explained RatBastardCapitalismTM in terms of racetrack betting. Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
Gordon Brown today calls on nations across the world to follow Britain in its "ground-breaking" moves to save the banking system. The Prime Minister, writing in The Times, urges other governments to put money into struggling banks and offer similar guarantees worth hundreds of billions to persuade the banks to start lending to each other again. Amid indications that the United States is considering such moves, Mr Brown calls for a global solution to a global problem. He says that he never expected to find himself taking a government stake in banks but that countries had to abandon "outworn dogmas" and embrace new solutions.
Gordon Brown today calls on nations across the world to follow Britain in its "ground-breaking" moves to save the banking system.
The Prime Minister, writing in The Times, urges other governments to put money into struggling banks and offer similar guarantees worth hundreds of billions to persuade the banks to start lending to each other again.
Amid indications that the United States is considering such moves, Mr Brown calls for a global solution to a global problem. He says that he never expected to find himself taking a government stake in banks but that countries had to abandon "outworn dogmas" and embrace new solutions.
Krugman:
What should be done? The United States and Europe should just say "Yes, prime minister." The British plan isn't perfect, but there's widespread agreement among economists that it offers by far the best available template for a broader rescue effort.And the time to act is now. You may think that things can't get any worse -- but they can, and if nothing is done in the next few days, they will.
What should be done? The United States and Europe should just say "Yes, prime minister." The British plan isn't perfect, but there's widespread agreement among economists that it offers by far the best available template for a broader rescue effort.
And the time to act is now. You may think that things can't get any worse -- but they can, and if nothing is done in the next few days, they will.
Problem solved. In the long run, we're all dead. John Maynard Keynes
