Swiss bank UBS axed bonuses for top executives on Monday and said it would introduce a more transparent pay system in the most far-reaching changes on pay at a top European lender during the credit crisis.UBS, which is struggling in the subprime crisis and whose shares slumped to a new all-time low on Monday, said Chairman Peter Kurer, Chief Executive Marcel Rohner and other executive board members would not get any bonuses this year.Starting from 2009, top managers' bonuses will be blocked for at least three years instead of being paid immediately and executives will receive variable pay if UBS results warrant.Under the new system, the chairman will only be awarded a fixed salary.Kurer's fixed-pay salary for this year was 2 million Swiss francs ($1.68 million), he said on Monday."UBS is fully committed to taking its responsibilities seriously and correcting previous errors," the bank said.
Swiss bank UBS axed bonuses for top executives on Monday and said it would introduce a more transparent pay system in the most far-reaching changes on pay at a top European lender during the credit crisis.
UBS, which is struggling in the subprime crisis and whose shares slumped to a new all-time low on Monday, said Chairman Peter Kurer, Chief Executive Marcel Rohner and other executive board members would not get any bonuses this year.
Starting from 2009, top managers' bonuses will be blocked for at least three years instead of being paid immediately and executives will receive variable pay if UBS results warrant.
Under the new system, the chairman will only be awarded a fixed salary.
Kurer's fixed-pay salary for this year was 2 million Swiss francs ($1.68 million), he said on Monday.
"UBS is fully committed to taking its responsibilities seriously and correcting previous errors," the bank said.
Tax rises are set to follow next week's tax cuts, ministers admitted yesterday as Gordon Brown raised the spectre of deflation in Britain for the first time. David Cameron predicted a tax-raising "bombshell" after Lord Mandelson, the Business Secretary, spoke of the need for "structural adjustments later on" and Mr Brown himself accepted that the Pre-Budget Report (PBR) stimulus would be "temporary". Their remarks reflected the strong Treasury view that next week's tax cut and spending package from the Chancellor, Alistair Darling, must be accompanied by evidence that he intends to get soaring borrowing back on course over the medium term. That should mean tax rises, spending cuts or both. As the Prime Minister, reporting back to MPs from the Washington summit, predicted that governments across the world would soon be cutting taxes or raising spending, Mr Cameron told him to come clean and admit that his higher borrowing meant "higher taxes tomorrow".
Tax rises are set to follow next week's tax cuts, ministers admitted yesterday as Gordon Brown raised the spectre of deflation in Britain for the first time.
David Cameron predicted a tax-raising "bombshell" after Lord Mandelson, the Business Secretary, spoke of the need for "structural adjustments later on" and Mr Brown himself accepted that the Pre-Budget Report (PBR) stimulus would be "temporary".
Their remarks reflected the strong Treasury view that next week's tax cut and spending package from the Chancellor, Alistair Darling, must be accompanied by evidence that he intends to get soaring borrowing back on course over the medium term. That should mean tax rises, spending cuts or both.
As the Prime Minister, reporting back to MPs from the Washington summit, predicted that governments across the world would soon be cutting taxes or raising spending, Mr Cameron told him to come clean and admit that his higher borrowing meant "higher taxes tomorrow".
At the financial summit in Washington, the international community was unduly respectful of the United States, neglecting to probe more deeply into the reasons for the crisis. Only one attendee was unruly -- German Finance Minister Peer Steinbrück. Here's the message he didn't deliver to Bush. First, the true part of the story: US President George W. Bush had invited the leaders of the world's 20 most important countries to a dinner at the White House last Friday evening. Because the financial crisis was the topic of discussion, each leader had the option of bringing along his or her finance minister. The first course, smoked quail, was to be served at 7:20 p.m. Everyone was on time, except one man. German Chancellor Angela Merkel had arrived in a Cadillac at 6:35 p.m., the Russian president in a Mercedes and the president of the World Bank in a Lexus. Everyone looked festive. A dinner in the West Wing of the White House is still one of the highlights of a politician's career. But where was Peer Steinbrück?
At the financial summit in Washington, the international community was unduly respectful of the United States, neglecting to probe more deeply into the reasons for the crisis. Only one attendee was unruly -- German Finance Minister Peer Steinbrück. Here's the message he didn't deliver to Bush.
First, the true part of the story: US President George W. Bush had invited the leaders of the world's 20 most important countries to a dinner at the White House last Friday evening. Because the financial crisis was the topic of discussion, each leader had the option of bringing along his or her finance minister. The first course, smoked quail, was to be served at 7:20 p.m.
Everyone was on time, except one man.
German Chancellor Angela Merkel had arrived in a Cadillac at 6:35 p.m., the Russian president in a Mercedes and the president of the World Bank in a Lexus. Everyone looked festive. A dinner in the West Wing of the White House is still one of the highlights of a politician's career.
But where was Peer Steinbrück?
The Netherlands, Spain and Poland were all keen to get invited to join last weekend's summit of world leaders to discuss the economic crisis. The competition for a seat reflected the historical importance of the meeting and the shift in the balance of power. "I need my own chair," Spanish Prime Minister Jose Luis Rodriguez Zapatero said last week, referring to his desire to go to the G-20 economic summit in Washington. The Dutch prime minister was also trying to get an invitation to the event. It was becoming a bit like the party game of musical chairs -- with more guests than seats. World leaders, including Spanish Prime Minister Jose Luis Rodriguez Zapatero at the Summit on Financial Markets and the World Economy on Saturday. The competition reflected the historical importance of the meeting and the shift in power politics. The meeting had to be small enough to allow dialogue but large enough to have the authority to speak on behalf of the world. The host, US president George W. Bush, wanted to limit the guest list to those who attend the annual G-20 meeting: the Western industrialized countries of the G-7, the world's 12 developing economies and the European Union. This did not go down well with Spain, which despite being the world's eighth-biggest economy, is not a member of the G-20. Bush kept the door closed but French president Nicolas Sarkozy offered a solution. He had four tickets for the front row: two for France, which is a member of the G-7, and two because of France's role as the rotating, six-month president of the European Union. He offered the latter two to Zapatero.
The Netherlands, Spain and Poland were all keen to get invited to join last weekend's summit of world leaders to discuss the economic crisis. The competition for a seat reflected the historical importance of the meeting and the shift in the balance of power.
"I need my own chair," Spanish Prime Minister Jose Luis Rodriguez Zapatero said last week, referring to his desire to go to the G-20 economic summit in Washington. The Dutch prime minister was also trying to get an invitation to the event. It was becoming a bit like the party game of musical chairs -- with more guests than seats.
World leaders, including Spanish Prime Minister Jose Luis Rodriguez Zapatero at the Summit on Financial Markets and the World Economy on Saturday. The competition reflected the historical importance of the meeting and the shift in power politics. The meeting had to be small enough to allow dialogue but large enough to have the authority to speak on behalf of the world.
The host, US president George W. Bush, wanted to limit the guest list to those who attend the annual G-20 meeting: the Western industrialized countries of the G-7, the world's 12 developing economies and the European Union.
This did not go down well with Spain, which despite being the world's eighth-biggest economy, is not a member of the G-20. Bush kept the door closed but French president Nicolas Sarkozy offered a solution. He had four tickets for the front row: two for France, which is a member of the G-7, and two because of France's role as the rotating, six-month president of the European Union. He offered the latter two to Zapatero.
In an interview with SPIEGEL ONLINE, Yvo de Boer, executive secretary of the UN Framework Convention on Climate Change, discusses how the current financial crisis will dampen national initiatives to curb greenhouse gas emissions and why he still has hopes Kyoto targets can be reached. SPIEGEL ONLINE: Mr. de Boer, since 2000, the industrialized nations have continued to increase their greenhouse gas emissions. Has the world failed in moving to protect the climate? de Boer: I don't think so. We have released data from 2006 -- in other words, just one year after the Kyoto Protocol went into effect. Emissions keep rising, but they will start going down. The countries that signed the Kyoto Protocol are still in a position to reach their goals. SPIEGEL ONLINE: But it still seems like many of these countries, such as Japan, aren't paying much attention to their climate-protection obligations. DDP A wind turbine in front of a coal-burning power facility in the eastern German state of Brandenburg. de Boer: Japan certainly does have a long way to go before it reaches its goals. But the country is changing its policies, and it is also planning on purchasing international emissions rights. That's why I'm certain that Japan will reach its Kyoto goal. SPIEGEL ONLINE: And how do things look with Canada? de Boer: There's no denying that Canada has very significant problems. But, in this case, the situation is perhaps a bit strange. The country has said that it will not be able to reach its Kyoto goal, but it still says that it doesn't intend to abandon the treaty.
In an interview with SPIEGEL ONLINE, Yvo de Boer, executive secretary of the UN Framework Convention on Climate Change, discusses how the current financial crisis will dampen national initiatives to curb greenhouse gas emissions and why he still has hopes Kyoto targets can be reached.
SPIEGEL ONLINE: Mr. de Boer, since 2000, the industrialized nations have continued to increase their greenhouse gas emissions. Has the world failed in moving to protect the climate?
de Boer: I don't think so. We have released data from 2006 -- in other words, just one year after the Kyoto Protocol went into effect. Emissions keep rising, but they will start going down. The countries that signed the Kyoto Protocol are still in a position to reach their goals.
SPIEGEL ONLINE: But it still seems like many of these countries, such as Japan, aren't paying much attention to their climate-protection obligations.
DDP
A wind turbine in front of a coal-burning power facility in the eastern German state of Brandenburg. de Boer: Japan certainly does have a long way to go before it reaches its goals. But the country is changing its policies, and it is also planning on purchasing international emissions rights. That's why I'm certain that Japan will reach its Kyoto goal.
SPIEGEL ONLINE: And how do things look with Canada?
de Boer: There's no denying that Canada has very significant problems. But, in this case, the situation is perhaps a bit strange. The country has said that it will not be able to reach its Kyoto goal, but it still says that it doesn't intend to abandon the treaty.
A classic scholar has proved the point, by unearthing a Greek version of the world-famous piece that is some 1,600 years old. A comedy duo called Hierocles and Philagrius told the original version, only rather than a parrot they used a slave. It concerns a man who complains to his friend that he was sold a slave who dies in his service. His companion replies: "When he was with me, he never did any such thing!" The joke was discovered in a collection of 265 jokes called Philogelos: The Laugh Addict, which dates from the fourth century AD.
A comedy duo called Hierocles and Philagrius told the original version, only rather than a parrot they used a slave.
It concerns a man who complains to his friend that he was sold a slave who dies in his service.
His companion replies: "When he was with me, he never did any such thing!"
The joke was discovered in a collection of 265 jokes called Philogelos: The Laugh Addict, which dates from the fourth century AD.
Who wrote the "Dead Economy" sketch?
Deregulators. Maybe former U.S. Senator Phil Gramm, personally.
From the NY Times, Phil Gramm, Unswayed Champion of Deregulation.
On Capitol Hill, Mr. Gramm became the most effective proponent of deregulation in a generation... And in one remarkable stretch from 1999 to 2001, he pushed laws and promoted policies that he says unshackled businesses from needless restraints but his critics charge significantly contributed to the financial crisis that has rattled the nation. He led the effort to block measures curtailing deceptive or predatory lending, which was just beginning to result in a jump in home foreclosures that would undermine the financial markets. He advanced legislation that fractured oversight of Wall Street while knocking down Depression-era barriers that restricted the rise and reach of financial conglomerates. And he pushed through a provision that ensured virtually no regulation of the complex financial instruments known as derivatives, including credit swaps, contracts that would encourage risky investment practices at Wall Street's most venerable institutions and spread the risks, like a virus, around the world... In two recent interviews, Mr. Gramm described the current turmoil as "an incredible trauma," but said he was proud of his record. He blamed others for the crisis: Democrats who dropped barriers to borrowing in order to promote homeownership; what he once termed "predatory borrowers" who took out mortgages they could not afford; banks that took on too much risk; and large financial institutions that did not set aside enough capital to cover their bad bets. But looser regulation played virtually no role, he argued, saying that is simply an emerging myth.
He led the effort to block measures curtailing deceptive or predatory lending, which was just beginning to result in a jump in home foreclosures that would undermine the financial markets. He advanced legislation that fractured oversight of Wall Street while knocking down Depression-era barriers that restricted the rise and reach of financial conglomerates.
And he pushed through a provision that ensured virtually no regulation of the complex financial instruments known as derivatives, including credit swaps, contracts that would encourage risky investment practices at Wall Street's most venerable institutions and spread the risks, like a virus, around the world...
In two recent interviews, Mr. Gramm described the current turmoil as "an incredible trauma," but said he was proud of his record.
He blamed others for the crisis: Democrats who dropped barriers to borrowing in order to promote homeownership; what he once termed "predatory borrowers" who took out mortgages they could not afford; banks that took on too much risk; and large financial institutions that did not set aside enough capital to cover their bad bets.
But looser regulation played virtually no role, he argued, saying that is simply an emerging myth.
Conservatism can not fail.™
Citigroup to slash 50,000 jobs worldwide Citigroup said it would cut up to 50,000 jobs worldwide as the US banking giant struggles with the global financial crisis and four consecutive quarters of heavy losses. ...Citigroup has already announced plans for 22,000 staff reductions and has eliminated at least 13,000 so far this year, according to company figures.
