More government aided banks following the big bonus fiasco!

Greenfaol By Greenfaol, 12th Jan 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/ohbtuivw/
Posted in Wikinut>Business>Accounting & Finance

It’s bad enough that the Royal Bank of Scotland is doing the ridiculous bonuses again, but now Lloyds is joining them! Read on to discover just how terrible this is for the tax payer!

Can you believe it?

Lloyd’s Banking Group is owned in part by the taxpayer (some 41%).

Lloyds bank head, Eric Daniels is to take a £2million bonus this year. To make matters worse, he is also considering accepting shares to the same value. This is the same boss who required the government to bail Lloyds out in 2008. He did not to get a bonus last year, due to the fact that he lost Lloyds Bank Group £6.3 billion in 2010!

Mr Daniels currently receives over £1 million in salary.

And the government?

Furthermore, this man has been in the country since 2001 and it is believed he has kept his tax-status as non-domesticated, so not only is he taking humongous amounts of money from the government (through the bank), he is not paying appropriate taxes!

What is the government doing about this? Not a darned thing. They ask banks to stop the bonuses but they are just as well talking to a brick wall. The truly horrific thing is that these bankers earn millions in salary anyway, they absolutely do not need these bonuses to boost their incomes.

Fearing the rats will abandon the ship

Why is the government not preventing banks (who owe the government a great deal of money) from handing out bonuses? Because they are afraid that the bankers will leave the country. They feel that they are backed into a corner on this situation. Britain is a thriving (or at least it was) financial capital and our politicians are afraid they may lose it but that’s not going to happen.

They aren't the only bankers out there

Frankly, whether they move or not, there will be others to take their place. Can we really accept this as the reason for forking out billions of pounds to a very few over-paid bankers?
For more on the bank situation, have a look at my article, Banks giving Big Bonuses Again!

Sources:
http://www.bbc.co.uk/news/business-12169238
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2011/01/lloyds_daniels_to_receive_2m_b.html
http://en.wikipedia.org/wiki/Eric_Daniels

Tags

Banks, Bonuses, Eric Daniels, Finances, Government, Government Spending, Lloyds Banking Group, Money, Tax Payers

Meet the author

author avatar Greenfaol
I write a variety of things, from health to cooking, to spiritual, to everyday living. Writing is a passion, and I am trying to become a professional.

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Comments

author avatar christopheranton
13th Jan 2011 (#)

I am kind of moving round to
your point of view on that one.
Thanks for the article.
It needed to be said.

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author avatar Greenfaol
13th Jan 2011 (#)

You're very welcome. I am trying to write as biasedely as i can but find it very difficult, given the current financial situation.

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author avatar Greenfaol
13th Jan 2011 (#)

ok, typo with unbiasedly

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author avatar Carol
13th Jan 2011 (#)

very interesting, many thanks

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author avatar Denise O
15th Jan 2011 (#)

It really is mind boggling huh. Good read. I hope your day is a good one. I just wrote Brian about 15 minutes ago that I was going outside with buggah and then I realized I missed one of your articles...now we can not have none of that! Keep up the good work my friend.
Thank you for sharing.:)

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author avatar Greenfaol
16th Jan 2011 (#)

Thanks Carol :D
No worries Denise, I know you look at them :p Thank you both :D

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author avatar Olivia Emisar
17th Jan 2011 (#)

It is disheartening. I thought GB was way better than US, but it seems the same players have their dirty hands in every economy.
Thanks for the article.

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author avatar Greenfaol
17th Jan 2011 (#)

So true, Olivia, thanks for your comment :D

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